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RENEWABLE ENERGY ENERGETICA INDIA Hero Future raises Rs. 3 billion from Climate Bonds Securities certified by the Climate Bonds Initiative are meant to provide additional assurance to investors about the climate benefit of their investments. Hero Future Energies recently raised Rs 300 crore from the issue of India’s first certified climate bonds for the expansion of its wind portfolio. “Proceeds from the funds raised will be invested in realizing our goal of 2.5 GW over the next few years,” said Sunil Jain, CEO of Hero Future Energies. “Such competitively priced instruments are the way forward in reducing the cost of financing and thereby the cost of energy in India.” The Securities & Exchange Board of India, the market regulator, had approved the norms for issuance and listing of green bonds in January 2016. Jain said such certifications bring transparency and will help meet the financing requirements of $2.5 trillion for climate change actions in India by 2030. The company secured the funding through the issuance of rated and secured non-convertible debentures, Hero Future said in a statement. The securities were validated by the Climate Bonds Initiative, an international, investor-focused, not-for-profit organization, which issues this certification under a robust framework for monitoring, reporting and assurance of conformance with the relevant standards. “As the certified green bond market scales up in India, it is likely to open up new avenues in renewable energy financing,” said SPEAKING TO... ENERGETICA INDIA: Congratulations on successfully raising India’s first certified climate bond. How does one define a climate bond? NAVEEN KHANDELWAL: Thanks for your wishes. Climate bonds are a kind of/sub-set of Green Bonds wherein issuers go for a third party verification and validation process for defined end use of the proceeds of issuance. ENERGETICA INDIA: How encouraging is India’s financial services system for Mr. Naveen Khandelwal, Head Strategy & Investment, Hero Future Energies growth of green bonds? What kind of improvements do you suggest for SEBI? NAVEEN KHANDELWAL: So here we have two issues, first being the depth of Indian Debt Capital Markets (DCM) which lags significantly from developed world’s DCM. Then comes the question of appreciation and on the company’s success in climate bonds and learns more about this new concept “Proceeds from the funds raised will be invested in realizing our goal of 2.5 GW over the next few years,” said Sunil Jain, CEO of Hero Future Energies energética INDIA · MAR | APR16 41


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