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HSBC India plans to launch ‘green bonds’ this year

According to reports, HSBC India is planning to launch ’green bonds’ this year to enable fund raising for investments in projects with environmental benefits, the private sector bank’s Chairman Naina Lal Kidwai said on Monday.

“HSBC is the world’s fourth largest issuer of green bonds. We are big player. We are working to get this in India.

We are working with key authorities on this issue. Most probably we will launch this year,” Kidwai told reporters on the sidelines of a Ficci event.

She did not divulge the size of green bonds saying that the discussions on the new product are at a nascent stage.

Globally, the green bonds market has tripled to USD 37 billion in last two years, Kidwai said, adding that India’s market for these bonds is “just the tip of the iceberg” and there is scope to grow.

Some banks like Axis Bank and Yes Bank have come out with such bonds. In February, Yes Bank had raised Rs 1,000 crore against a targeted Rs 500 crore by issuing green infrastructure bonds

Besides green bonds, Kidwai also emphasised on creating ‘Yieldcos’ that enable access to low cost liquid and generate predicable cash flows by bundling up renewable assets with long-term power purchase agreements.

“For Yieldcos, we need large amount of support from regulatory SEBI. We hope it clears the way for this product soon,” she added.

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