CEF Insights

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September
Renewable Energy

Indian lenders step up fundraising via infrastructure bonds as spending rises

Author
Gagan Sidhu

Notable because

The domestic bond market is an attractive route for highly rated issuers to raise capital in large volumes. The recent spurt in issuances by lenders comes within months of India’s announcement of its annual 50 GW RE bidding trajectory over five years. Achieving India’s 2030 RE targets will require USD 200 billion for generation alone, and the capital raise by lenders should contribute to increased lending to finance these targets.

What to look out for in the months ahead

Infrastructure spans a wide canvas. How will the capital thus raised be split between RE and other infrastructure categories that also need capital expenditure urgently?

Solutions that allow issuances that are presently unable to access the bond market directly may be invaluable in mobilising capital to achieve India’s RE targets.