Sunday, December 27, 2015

IDBI Bank – First commercial bank to raise $350 mn via green bonds

Mumbai headquartered IDBI Bank has become the first commercial state-owned bank to raise $350 million via selling green bonds, where proceeds are used for clean energy projects.
  • Bonds were priced at 4.26% (fixed rate) after adding a mark-up or spread of 255 basis points on five-year US Treasury now at 71%. But, the bank has converted those securities into floating rate, and they are offering 3.22%
  • Bond will be of five-year maturity. This is a part of the bank’s medium-term-note programme, set at $5 billion over next few years.

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