StanChart arranges India’s first listed green NCDs by an RE developer
StanChart facilitates India’s first listed green NCDs by a renewable energy developer, marking a major milestone in sustainable finance and green investment.
StanChart arranges India’s first listed green NCDs by an RE developer
Mumbai, Nov 19
Standard Chartered Bank has arranged India’s first listed green NCDs by a Real Estate developer.
Total Environment Resorts, a subsidiary of Bengaluru-based Total Environment Group, has issued Rs 175 crore listed rated non-convertible debentures (NCDs), which were arranged and subscribed by Standard Chartered.
Talking to Bizz Buzz, Venkatakrishnan Srinivasan, the Founder and Managing Partner of Rockfort Fincap says, “This issuance marks the first listed green NCD from an Indian real estate developer.”
Standard Chartered acted as the sole arranger and green co-ordinator for this issuance.
The proceeds from these NCDs will be primarily utilised for the development of a residential real estate project in Bengaluru. This project is pre-certified at Indian Green Building Council (IGBC) – Green Homes Platinum level. This issuance received a Second Party Opinion (SPO) from Bureau Veritas, an independent expert in risk management and quality assurance.
The Bank provided comprehensive support to structure the green NCD, select the SPO provider, and manage the SPO process. The issuance complies with the International Capital Market Association’s (ICMA) Green Bond Principles and the Securities and Exchange Board of India’s (SEBI) Green Debt Securities Regulations.
MV Hariharan, ex treasury head, SBI says, “A Good First Step. Much, much more needed.”
Given the current realities and accompanying scepticism about climate change, this has to exponentially increase rather than the sporadic one offs seen now, he said.
Even the RBI is focusing on strengthening the ESG framework to make sustainable lending more robust. SEBI has mandated the reporting by companies too.
But while there are some attempts, these are few and far between to have the required impact. The fond hopes are definitely ignited on an architecture which will support the endeavours to anchor transformational outcomes. Till then, the jury is still out on such " breakouts".
EoM.
