Hero Future Energies, the renewable energy arm of the Hero Group, announced issuance of ₹ 300 crore worth of certified climate bonds to expand its wind energy portfolio.The rated and secured non-convertible debentures have been issued by its wind energy holding company.
“The proceeds from the fund raised will be invested for reaching our target of 2,500 MW of wind power capacity in the next few years. In January, SEBI also approved norms for issuance and listing of green bonds. Such certifications will bring transparency and help meet financing needs for renewable energy,” said Sunil Jain, Chief Executive Officer of Hero Future Energies.
Climate bonds are green bonds which require mandatory independent third party verification about the climate benefit of the investments.
The Climate Bonds Initiative standards sets out clear criteria to verify certain green credentials of a bond. The standard is backed by the Climate Bonds standards board comprising of pre-eminent & independent investor entities, which collectively represents $34 trillion in assets under management.
The total green bonds issued globally are around $42.4 billion in 2015 and is expected to cross $ 60 billion in 2016.
“This kind of certification is an assurance on green use of proceeds and will attract global investors. As the certified green bond market scales up in India, it is likely to open up new avenues in renewable energy financing,” said Rahul Munjal, Managing Director of Hero Future Energies.