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CLP issues India green bond to fund wind farms

The Hong Kong-based power company has raised about $91m to develop renewable energy projects in India.

CLP Holdings (CLP) has issued a green bond through its wholly-owned subsidiary CLP Wind Farms (India) to fund the development of Indian wind projects, as part of its strategy to diversify its financing options.

Tapping new funding sources, the unit has raised INR6 billion (€81 million; $91 million) through the offering, making it the first company in the power sector in South Asia and Southeast Asia to issue a green bond.

It was also one of the first power sector companies in India to issue an asset-specific bond in April 2015.

A spokesperson for the Hong Kong utility said Indian mutual fund companies are the main interested parties in the bond.

The proceeds from the offering will be used to fund its projects in the renewable space in India. IDFC, HSBC and Standard Chartered are the lead arrangers for the bond issuance.

Geert Peeters, CLP’s chief financial officer, said: “We are encouraged by the success of the inaugural issuance of the green bond in a non-traditional market and the keen support from our banking partners. This gives us the confidence in pursuing similar financing initiatives for our future clean energy investments in line with the Group’s contribution to the worldwide energy transition efforts.”

The spokesperson added that India is a key growth market for CLP. One of the company’s areas of focus in the country is to build its renewable energy portfolio, the person explained, and wind has been an integral part of that strategy.

The company is also evaluating opportunities for potential solar power projects and will consider bidding for what it deems as attractive and viable ventures.

CLP is the largest wind power developer in India with committed projects of more than 1,000 megawatts (MW). Currently, CLP has 15 operating wind farms across six states in India, such as the 106.4MW Andhra Lake Wind Farm and the 102.4MW Bhakrani Wind Farm.

It also has a mix of conventional and renewable energy assets located in mainland China, Southeast Asia, Taiwan and Australia.