Mumbai: Axis Bank, India’s leading private sector bank, opened trade at London on 6th June 2016 to celebrate the bank’s landmark issuance of Asia’s first internationally listed certified green bond on London Stock Exchange. The bond, certified by the Climate Bonds Standards Board, raised USD 500 million.
It is the first green bond for Axis Bank within its USD 5 billion Medium Term Note (MTN) programme, which has additionally listed its entire MTN programme in London. The proceeds of the bond will be invested in green energy, transportation and infrastructure projects, reinforcing India’s commitment to produce 175,000 MW of renewable power by 2022.
To celebrate the listing, Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group welcomed, Alok Sharma MP, Prime Minister’s Infrastructure Envoy to the UK and Shikha Sharma, Managing Director & CEO of Axis Bank to open trading in London this morning.
Shikha Sharma, Managing Director & CEO of Axis Bank:
“We, at Axis Bank, have always demonstrated our commitment to fostering a green and sustainable environment through our various initiatives. In addition to putting in place ‘sustainable lending’ practices on the lending side, Axis has also taken measures at its corporate office and branches to promote a green footprint. To further progress on this journey, Axis Bank launched and successfully completed the first certified Green Bond issue, the issue we are pleased to list on the London Stock Exchange today. The encouraging response to this issue is reflective of the keenness of global investors to promote and support a sustainable environment and also acknowledge Axis’s credibility in this space. The ease of the listing process and breadth of investors seen in this bond issuance demonstrates the role London Stock Exchange can play in supporting India’s financing needs.”
Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group:
“Axis Bank is a long standing and distinguished equity issuer on London Stock Exchange, and has been an instrumental partner in the IFC’s masala bond programme devoted to developing infrastructure in India. It is therefore no surprise that Axis Bank is taking a global leadership role today, with the successful issuance of the first internationally listed certified green bond from India. We are honoured to welcome this landmark issuance, which builds on the far-reaching announcements made during Prime Minister Modi’s visit strengthening financial ties between the UK and India.
“London Stock Exchange is a world leader in green bond listings, home to international green finance from India and China. In partnership with the UK Government, we remain committed to building London as the premier centre for green bond issuance and green finance and look forward to further collaboration with Axis Bank, as it continues to strengthen its presence in the UK and globally.”
London Stock Exchange has a strong track record of supporting green issuance on its markets. London welcomed the first green bond ever issued by a Chinese financial institution last year. Agricultural Bank of China issued RMB and dollar green bonds with a total value of USD 1 billion on London Stock Exchange in October 2015. This followed the launch in July 2015 of a range of new segments on London Stock Exchange’s fixed income markets, designed to support the new global demand for green bonds.
To date, there are 31 green bonds on London Stock Exchange, including those denominated in Rupees and Renminbi, which have raised over USD 7 billion. In 2016 alone, 6 new green bonds have raised over USD 2 billion.
Axis Bank’s green bond follows the listing of the first Rupee denominated bond on London Stock Exchange, issued by International Finance Corporation, in 2014. The proceeds of the USD 163 million equivalent Masala bond were invested into Axis Bank’s infrastructure bonds.
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