HSBC India plans to launch ‘green bonds’
HSBC India’s chairman Naina Lal Kidwai announced to launch ’green bonds’ in India for raising funds for investments in environmental projects. Announcement was done by the HSBC chairman in a Ficci event held on 3 August 2015.
The total investment attracted by Green Bonds in last two years is 37 million dollars. HSBC is the fourth largest issuer in the world.
Green Bonds in India was initially launched by Axis Bank and Yes Bank in February 2015 that attracted investment of 1,000 crore rupees against the target of 500 crore rupees.
What is Green Bond?
A bond is a debt instrument with which a bond issuer gets capital while the investors receive fixed income in the form of interest. The issuer of green bond gets capital from the investors only if the investment is being raised to fund ‘green’ projects relating to renewable energy or emission reductions etc.
Note: Besides green bonds HSBC is also emphasising on creating ‘Yieldcos’. It is a product that enables access to low cost liquid and generates predicable cash flows by bundling up renewable assets with long-term power purchase agreements.