India Exim Bank lists $1 billion sustainability bond at London Stock Exchange

New Delhi: The Export-Import Bank of India (India Exim Bank) has  listed its maiden 10-year $1billion sustainability bond on the Sustainable Bond Market (SBM) platform at the London Stock Exchange (LSE), the development finance institution said in a statement on Wednesday.

Sustainability bonds are issues where proceeds are used to finance a combination of green and social projects. The listing will give India Exim Bank access to a deeper pool of capital and a wider investor base.

"Today, the bank has seven of its issuances amounting to $4.7 bn, listed at the London Stock Exchange," said Harsha Bangari, managing director of India Exim Bank. “The partnership has given our bonds better visibility, apart from providing access to a deep pool of capital and wide investor base.”

India Exim Bank, which finances and facilitates India's international trade, had in January raised $1 billion issuing 10-year Sustainability Bond under its Environmental Social Governance (ESG) Framework.

The Union government-backed institution received an external post issuance review in July after the completion of an evaluation of the projects and assets funded with proceeds from this bond. Following this, the LSE conducted due diligence to qualify the bond listing on its SBM Platform.

“The recent developments and collaborative efforts between India and the UK in the financial sector have laid a strong foundation for continued cooperation and growth," said Vivek Joshi, secretary, Department of Financial Services, Ministry of Finance.

Green, social, sustainable and sustainability-linked bond (GSSSB) issuance is expected to hit $900 billion to $1 trillion in 2023, according to a report by S&P Global.

Government action, broader market uncertainty, adaptation financing, and responding to credibility questions will help determine total issuance, as per the report.

Apart from the LSE, the India Exim Bank has listed its maiden 10-year $1 billion sustainability bond on the India International Exchange (INX), the country's first international exchange located at the International Financial Services Centre (IFSC) in Gujarat International Finance Tec-City (GIFT City).

The bond is also listed on AFRINEX Ltd. (Afrinex)’s AFEX Green platform dedicated to social, green, and sustainable financing and on the Singapore Exchange Securities Trading Limited (SGX-ST).