IRFC becomes first CPSE to list Green Offshore Bonds at Indian stock exchanges

Tags: Economics/Business

Indian Railway Finance Corporation Limited (IRFC) has become the first Central Public Sector Enterprise (CPSE) to exclusively list its Green Offshore Bonds at Indian stock exchanges.

• The bond was listed at India International Exchange  established in the GIFT City, Gandhinagar, Gujarat .
• IRFC raised $500 million and the duration of the bond was 10 years.

Green bonds 

It is a type of debt instrument issued by a company to fund projects which have positive climate or environmental projects .

For example it will be used to provide loans to set up solar projects which are environmentally friendly and not to fund coal based power plants which harm the environment .

Off-Shore Bonds 

Bonds which are issued by a company outside its country . For example IRFC is an Indian company but it raised $500 million by issuing bonds outside India . Hence it was an off-shore bond issue.

CPSE 

Central Public Sector Enterprises are those companies in which the direct holding of the Central Government or other CPSEs owned by the Central Government  is 51% or more.