Hero Future raises Rs.300 cr. through climate bond sale

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Hero Future Energies, a Hero Group firm that focuses on solar and wind projects, has raised about Rs.300 crore by issuing certified climate bonds for expanding its wind power business. “This is one of the most cost-effective ways of raising capital now. These are basically zero-coupon bonds and you get a reasonable tenure. Since these bonds are certified for use of proceeds for green energy projects, you get lot of investors who are willing to invest in such instruments,” Sunil Jain, CEO of Hero Future Energies, told The Hindu.

“We are expanding our wind power business in Andhra Pradesh, Madhya Pradesh and Rajasthan.

“In AP, we are doing a 240 MW single site project. By the end of May 2016, we will have about 600 MW of wind projects.Also, we will have pipeline of another 800 MW,” said Mr.Jain

Hero Future Energies said it was the first Indian company to issue climate bond certified by the Climate Bonds Initiative Standards Board, an international, investor-focused not-for-profit organisation

“Debt financing through alternative financing products such as bonds have seen reasonable success as they also attract alternative investors, including those who are looking to invest in green projects or emerging markets, etc. However, the debt raising capacity is still linked to near-term performance, assets available as collateral, etc,” Sai Venkateshwaran, Partner and Head, Accounting Advisory Services, KPMG in India told The Hindu.

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