India

SustainableDebt

StateoftheMarket

2024

$55.9bn

Cumulative

Aligned

GSS+

SLB

C

Green

!

Social

MUFG

Sustainability

PublishedbyClimateBondsledIndiaInitiativeonClimateRiskandSustainableFinance(IICRSF)andMUFG

IndiaSustainableDebtStateoftheMarket2024ClimateBondsInitiative2

Reportsummary

TheIndiaSustainableDebtStateoftheMarket2024report,publishedbytheClimateBondsInitiative(ClimateBonds)incollaborationwithMUFGBank,Ltd.,presentsanin-depthanalysisofIndia’sgreen,social,sustainability,andsustainability-linked(GSS+)debtmarket.

Fourkeyfocusareasofthereportareoutlinedbelow.

1.Themarkethasscaledupandisgainingmomentum:

AsofDecember2024,India’scumulativealignedGSS+

debtvolumehadreachedUSD55.9bn,reflectinga186%

increasesince2021.Greendebtdominatesthemarket,

accountingfor83%ofthetotalvolume.Issuesizes

areincreasing,helpingtoattractcapitalfromlarger

investors;maximumdealsareintherangeUSD100mto

USD500m,andIndiahasanactivemarketforbothbondsandloans.In

2024,USD6.4bnofalignedgreendebtvolumewaspricedandUSD5.5bnoflabelledgreenloansasperLoanConnectordatawithstrongerinterestinsocialbonds(USD5.5bn)andsocialloans(USD1.8bn).

2.Diversifiedinvestmentopportunitiesacross

categoriesofdecarbonisation:

Thereporthighlightsinvestmentopportunitiesacrosseightkeydecarbonisationcategoriesincludinglow-

carbonenergy,energyefficiency,low-carbontransport,andenergytransmissionupgradesby2030.Banks,

financialinstitutions(FIs),andfundsareaggregatinggreenandsocialimpactlendingportfoliosandissuing

greenandsocialbondstofinancetheseassets.Thepotentialfor

financingtransitioninhard-to-abatesectorssuchassteelandcementisunderscored,requiringanestimatedUSD650bnfordecarbonisation.Theuseofsustainability-linkedbonds(SLBs)isemergingasastrategictooltoincludeabroaderrangeofissuersoperatinginthesesectors.

3.Reallifecasestudiesdescribingthe

experiencesofcorporates,developmentfinance

institutions(DFIs)andglobalinvestors:

Thereportcontainsdetailedcasestudiespresented

bycorporatesandinvestorsandexplainsthepractical

applicationofvariousdebtinstruments.Thecase

studiesalsoprovideinsightsontheDFIapproachto

providingfinanceandhowIndiancorporateentitieshaveaccessedlocalandinternationalinvestorstosupport

theirclimateandsocialstrategies.

4.Bigger,better,andstrongerinthefuture:

PolicyandregulatorydevelopmentsareshapingIndia’ssustainablefinancelandscape.TheSecuritiesand

ExchangeBoardofIndia(SEBI)enhanceddisclosurerequirements,ESGDebtFramework,third-party

assuranceandcertifications,ReserveBankofIndia’s(RBI)GreenDepositFramework,andInternational

FinancialServicesCentresAuthority(IFSCA)sustainablefinance

guidelinesaredrivingmarketintegrityandinternationalparticipation.TheMinistryofFinance’supcomingClimateFinanceTaxonomyandtheMinistryofSteel’snewlyintroducedGreenSteelTaxonomywillfacilitatestandardisedsustainableinvestments,boostinginvestorconfidence.

Withstrongpolicysupport,growinginvestorinterest,androbust

pipelinesofcredible,sustainableprojects,India’ssustainabledebt

marketiswell-positionedtosupportitsclimateactionandsustainabledevelopmentgoals.

IndiaSustainableDebtStateoftheMarket2024ClimateBondsInitiative3

1.Introduction

Aboutthisreport

ThisisClimateBond’sthirdIndiaSustainableDebtStateoftheMarketreport,following

aprioriterationin2021,andaninaugural

countrybriefingpublishedin2018.1,2The

scopeofthisreportincludesgreen,social,

sustainability,andsustainability-linkedbondsandloansoriginatingfromIndiaandpricedonorbefore31December2024.

Contents

Reportsummary2

1.Introduction3

2.GSS+marketanalysis5

3.OpportunitiesforGSS+debt

inIndiaandemergingtrends21

4.GSS+debtinvestorperspectives28

5.PolicyframeworkandregulatorydevelopmentsinIndia’ssustainablefinanceecosystem31

6.Outlook33

Endnotes34

AbouttheClimateBondsInitiative

ClimateBondsisaninternationalorganisationworkingtomobiliseglobalcapitalforclimateaction.Itpromotesinvestmentinprojects

andassetsneededforarapidtransition

toalow-carbon,climate-resilient,andfair

economy.Themissionfocusistohelpdrive

downthecostofcapitalforlarge-scaleclimateandinfrastructureprojectsandtosupport

governmentsseekingincreasedcapitalmarketsinvestmenttomeetclimateandgreenhouse

gas(GHG)emissionreductiongoals.

ClimateBondsconductsmarketanalysis

andpolicyresearch,undertakesmarket

developmentactivities,advisesgovernmentsandregulators,andadministersaglobal

greenbondStandardandCertification

scheme.ClimateBondsscreensgreen

financeinstrumentsagainstitsGreen

BondDatasetMethodologytodetermine

alignment,andsharesinformationaboutthecompositionofthismarketwithpartners.3TheClimateBondsteamhasalsoexpandeditsanalysistootherthematicareas,such

associalandsustainabilitybonds,viathe

developmentofscreeningmethodologiesforinvestmentsthatgiverisetopositivesocialimpactsandaddedresilience.

ClimateBondsStandardandCertificationScheme

TheClimateBondsStandardandCertification

Schemeisavoluntarylabellingscheme

forentities,assets,bonds,loansandother

sustainability-linkeddebtinstruments.Rigorousscience-basedcriteriaensurethatitisconsistentwiththegoalsoftheParisClimateAgreementtolimitwarmingto1.5°C.Theschemeis

usedgloballybybondissuers,governments,

investors,andthefinancialmarketstoprioritiseinvestmentswhichgenuinelycontributeto

addressingclimatechange.TheStandardwasinitiallydesignedtobuildconfidenceinthe

climatechangecredentialsofgreenbonds

andotherdebtinstruments,toreducetheriskofgreenwashing,andtofacilitateinvestmentdecision-making.NowtheCertificationschemeexpandstobridgethemarketgapinexisting

guidanceontransitionfinancing.Itsupportsalltransition,providedthegoals,thepath,andthepacearesuitablyambitious.

ClimateBondsnowoffersfourCertificationoptions

?UseofProceedsCertification

?EntityCertification

?AssetCertification

?Sustainability-LinkedDebtCertification

AboutMUFG

MitsubishiUFJFinancialGroup,Inc.(MUFG)isoneoftheworld’sleadingfinancialgroups.HeadquarteredinTokyoandwithover360

yearsofhistory,MUFGhasaglobalnetworkwithapproximately2,000locationsinmorethan40markets.TheGrouphasabout

140,000employeesandoffersservices

includingcommercialbanking,trust

banking,securities,creditcards,consumerfinance,assetmanagement,andleasing.

TheGroupaimstobetheworld’smost

trustedfinancialgroupthroughclose

collaborationamongalloperating

companiesandflexiblyrespondstoallthefinancialneedsofitscustomers,serving

society,andfosteringsharedandsustainablegrowthforabetterworld.MUFG’sshares

tradeontheTokyo,Nagoya,andNewYorkstockexchanges.

MUFGBank,Ltd.isJapan’spremierbank,withaglobalnetworkspanningmorethan

40markets.

UndertheGroup’scurrentthree-yearMediumTermBusinessPlanendingFY2026,MUFGis

dynamicallypursuingopportunitiestoexpandandinvestinAsia’sgrowth.Thiswillbeguidedbyanunrelentingfocusoncapturingrecurringrevenueopportunities;challengingitselfin

newdomains;capitalisingonthegrowthofkeymarketslikeIndia,cultivatinganAsiandigitalstrategywhileconsolidatingandconcentratingoncorecompetencies.

OutsideofJapan,thebankoffersanextensivescopeofcommercialandinvestment

bankingproductsandservicestobusinesses,governments,andindividualsworldwide.InAsiaPacific,MUFGhasapresenceacross18

markets–Australia,Bangladesh,China,HongKong,Indonesia,India,SouthKorea,Laos,

Malaysia,Myanmar,NewZealand,Pakistan,Philippines,Singapore,SriLanka,Taiwan,Thailand,andVietnam.

IthasalsoformedstrategicpartnershipswithsomeofthemostprominentbanksinSouthEastAsia,furtheraugmentingitsunrivallednetworkacrosstheregion–VietinBankinVietnam,

KrungsriinThailand,SecurityBankinthe

Philippines,andBankDanamoninIndonesia.

MUFG’scommitmenttosustainablefinance

AspartofMUFG’songoingmissiontowards

partneringclientsandthecommunitytoachievesustainablegrowth,ithasraiseditscommitmentinsustainability-relatedfinancingfrom

2019–2030fromJPY35tntoJPY100tn.MUFG

alsoannounceditscommitmenttoachievenet-zeroemissionsinitsfinanceportfolioby2050anditsownoperationsby2030.

MUFGisafoundingmemberoftheWorldBank’sPrivateSectorInvestmentLab,taskedwith

mobilisingcapitalandprivatefinancetowardsemergingmarkets,includingthedevelopmentofrenewableenergyandenergyinfrastructure.

MUFGhaspublishedwhitepapersaround

Asia’senergytransition,fromJapan’sclimatestrategytoinsightsonthedecarbonisationoftheregion’spowersector.ItalsolaunchedMUFGN0W(NetZeroWorld),aseriesof

thoughtleadershipandnetworkingsessionstoproactivelyengagewithkeystakeholdersonthechallengesandopportunitiesrelatedtosustainabledevelopmentsinAsia.

IndiaSustainableDebtStateoftheMarket2024ClimateBondsInitiative4

Listofabbreviationsandacronyms

ADB:AsianDevelopmentBank

AMRUT:AtalMissionforRejuvenationandUrbanTransformation

AUM:Assetsundermanagement

BESS:Batteryenergystoragesystem

BII:BritishInternationalInvestment

BSE:BombayStockExchange

CBRT:ClimateBondsResilienceTaxonomy

CCTS:Carboncredittradingscheme

CFU:ClimateFinanceUnit

CGM:ChiefGeneralManager

CICERO:CenterforInternationalClimateResearch

COP:ConferenceoftheParties

DBS:DevelopmentBankofSingaporeLtd

DBSA:DevelopmentBankofSouthernAfrica

DFI:Developmentfinanceinstitution

DISCOMs:Distributioncompany

DNV:DetNorskeVeritas

DSCR:Debtservicecoverageratio

ECA:ExportCreditAgency/EnvironmentalComplianceAudit

ECB:Externalcommercialborrowing

EFD:ESGFinanceDepartment

EM:Emergingmarkets

ESG:Environmental,social,andgovernance

EUR:Euro

EV:Electricvehicle

FAME:Fasteradoptionandmanufacturingofelectricvehicles

FAR:Fullyaccessibleroute

FI:Financialinstitutions

FTSE:FinancialTimesStockExchange

GBDS:GreenBondDatabase

GBP:GreenBondPrinciples

GEAPP:GlobalEnergyAllianceforPeopleandPlanet

GHG:Greenhousegases

GIFTCity:GujaratInternationalFinanceTec-City

GPP:Greenpublicprocurement

GSS:Green,socialandsustainabilityGSS+:GSS,SLB,andtransition

GW:Gigawatt

HNI:High-net-worthindividual

HSBC:HongKongandShanghaiBankingCorporationLimited

ICMA:InternationalCapitalMarketAssociation

ICRA:InvestmentInformationandCreditRatingAgency

IFC:InternationalFinanceCorporation

IFSC:InternationalFinancialServicesCentre

IFSCA:InternationalFinancialServicesCentresAuthority

ILO:InternationalLabourOrganization

INR:Indianrupee

IREDA:IndianRenewableEnergyDevelopmentAgencyLimited

IRFC:IndianRailwayFinanceCorporation

JPY:Japaneseyen

KfW-IPEX:KreditanstaltfürWiederaufbauIPEX-BankGmbH

LSE:LondonSchoolofEconomics

LSEG:LondonStockExchangeGroup

MGS:MUFGGlobalServices

MLF:Mandatedleadarranger

MoEFCC:TheMinistryofEnvironment,Forest,andClimateChange

MoHUA:MinistryofHousingandUrbanAffairsMSME:Micro,small,andmediumenterprises

MTBP:Medium-termbusinessplan

NABARD:NationalBankforAgricultureandRuralDevelopment

NaBFID:NationalBankforFinancing

InfrastructureandDevelopment

NBFC:Non-bankingfinancialcompanies

NCD:Non-convertibledebentures

NITIAayog:NationalInstitutionforTransformingIndia

NTPCREL:NTPCRenewableEnergyLimited

OEM:Originalequipmentmanufacturer

PCE:Partialcreditenhancement

PE:Privateequity

PEL:PiramalEnterprisesLimited

PFC:PowerFinanceCorporationLimited

PFI:ProjectFinanceInternational

PLI:Production-linkedincentive

PSL:Prioritysectorlending

PSP:Pumpedstorageplant

RBI:ReserveBankofIndia

REC:RuralElectrificationCorporationLimited(formerly)

RIL:RelianceIndustriesLimited

SACE:ServiziAssicuratividelCommercioEstero

SAPCC:Stateactionplansonclimatechange

SBG:Sustainabilitybondguidelines

SBI:StateBankofIndia

SBP:SocialBondPrinciples

SDG:SustainableDevelopmentGoals

SEBI:SecuritiesandExchangeBoardofIndia

SGrB:Sovereigngreenbond

SLB:Sustainability-linkedbond

SLP:SocialLoanPrinciples

SMBC:SumitomoMitsuiBankingCorporation

SME:Smallandmediumenterprises

SPO:Secondpartyopinions

SPTs:Sustainabilityperformancetargets

TA:Technicalassistance

ULB:Urbanlocalbodies

UoP:Useofproceeds

USDFC:U.S.InternationalDevelopmentFinanceCorporation

USD:UnitedStatesdollar

UT:Unionterritory

VC:Venturecapital

VMC:VadodaraMunicipalCorporation

YTD:Yeartodate

IndiaSustainableDebtStateoftheMarket2024ClimateBondsInitiative5

2.GSS+marketanalysis

IndiaGSS+Scorecard

2024

Cumulativesince2006

Theme

Numberof

aligneddeals

USDbn

%total

Numberof

aligneddeals

USDbn

%total

Green

22

6.4

51

163

46.6

83

Social

7

5.5

44

11

6.6

12

Sustainability

2

0.6

5

4

2.2

4

SLB

0

0

0

1

.5

1

GrandTotal

31

12.5

100

179

55.9

100

ThesustainabledebtmarketinIndia,

encompassingbothbondsandloans,has

experiencedexponentialgrowthoverthelastfewyears.Thishasbeendrivenbyfavourablegovernmentpolicies,anincreaseinclimate-positivecapitalexpendituresbycorporates,andstrongercommitmentsfrominvestorsandbankstowardssustainablefinance.

Keyfigures

?Bytheendof2024,ClimateBonds

hadrecordedcumulativevolumeof

USD55.9bnofGSS+debtinalignmentwithitsscreeningmethodologies(aligned),

GSS+debtcapturedbyClimateBonds

Debtinstruments(bonds+loans)meeting

therequirementsoutlinedinClimateBondsscreeningmethodologiesqualifyforinclusioninthedatasetsandareclassifiedasaligned.

Labelleddealsforwhichthereisnot

enoughinformationtodetermineeligibility

GlobaldealvolumecapturedbyClimateBonds,USD

Aligned

Pending

Non-aligned

Cumulativeasof31/12/2024

5.7tn

26.1bn

1.2tn

2024

1.1tn

18bn

214.1bn

fordatabaseinclusionareclassifiedaspendinguntilsufficientdisclosureisavailabletodecide.

DealsfailingtomeettherequirementsofClimateBondsscreeningmethodologyareclassifiedasnon-alignedandareexcludedfromthedatasets.

originatingfromIndia.

?76IndianissuershavedeployedtheGSS+debtmarkettopriceatotalof179deals.

?Indiaisthefourthlargestemerging

market(EM)countrysourceofcumulativealignedGSS+volumeandcontributes

1%tothetotal.4

?Dealspricedin2024accountedfor

USD12.5bn,a25%declinecomparedtotheUSD16.7bnrecordedfor2023,whichhadbeenboostedbyaUSD7bnloanfromRenewPower.

?Greenisthedominantthemeaccountingfor83%ofcumulativealignedvolume

fromIndia.

?TheIndiansovereigngreenbond

CumulativealignedGSS+volumeasof31December2024

Country

oforigin

Total

USDbn

Markettype

Country

oforigin

Total

USDbn

Contributiontototal

Supranational

831.5

Supranational

Italy

141.7

Developed

USA

791.7

Developed

Sweden

115.9

Developed

France

578.4

Developed

Canada

94.7

Developed

China

555.5

Emerging

Australia

71.8

Developed

Germany

421.4

Developed

Norway

67.6

Developed

SouthKorea

339.2

Emerging

Chile

65.2

Emerging

Netherlands

217.3

Developed

Belgium

61.9

Developed

UK

180.9

Developed

India

55.9

Emerging

Spain

158.6

Developed

Mexico

55.9

Emerging

Japan

153.2

Developed

Denmark

55.2

Developed

Other

646.8

Developed

Total

5660.3

programmeisthejewelinIndia’ssustainabledebtcrownwithINR477bn(USD5.7bn)pricedbytheendof2024.

BytheendofDecember2024,ClimateBonds

hadrecordedcumulativealignedGSS+

volumeofUSD55.9bnoriginatingfromIndia.

Thisrepresentsanincreaseof186%since

thelastClimateBondsreportonIndiain

2021,whencumulativealignedvolumestoodatUSD21.4bn.Indiaisnowtheeighteenth

largestsourceofalignedGSS+debtglobally,

andthefourthlargestEMsource,afterChina

(USD555.5bn),SouthKorea(USD339.2bn),andChile(USD65.2bn).Thelattertwocountries

haveincreasedtheirpresencethrough

substantialissuesofalignedsocialand

sustainabilitydeals,whichhavelargelyyettobedeployedinIndia,pointingtohugepotentialtogrowthosesegmentsoftheGSS+market.

IndiaSustainableDebtStateoftheMarket2024ClimateBondsInitiative6

GreenisthestrongestthemeintheIndianGSS+market,withcumulativealignedvolumeof

USD46.6bnbytheendof2024,accountingfor83%ofthetotal.Thefirstsocialdealappearedin2018.In2024,alignedsocialdealsreachedUSD5.5bn,representing44%oftheYTDalignedGSS+volume.Todate,sustainabilitydealshavebeenscant,contributingjust4%tooverall

alignedvolume,whilealignedSLBpresenceisnegligibleat1%.

Non-financialcorporateissuershaveconsistentlyledGSS+alignedvolumefromIndiatakinga56%overallshare.However,in2024,government-

backedentitieshadthelargestimpact,with

volumefromthisissuertypereachingUSD5.2bn,or42%ofalignedGSS+volumeduringtheyear.

TheIndiangovernmententeredthemarketin2023andhadpricedUSD5.7bnbytheendof2024,withthepotentialtoincreaseitspresencefurther.

TheUSDisthepreferredcurrencyofIndian

issuers,with55%ofalignedvolume.The

INRhadameaningfulimpactin2023whenitaccountedfor72%ofalignedvolume,which

washelpedbythedebutIndiansovereign

greenbondsamountingtoINR360bn

(USD4.3bn)andRenewPower’sINR640bn

(USD7.8bn)loan,referencedabove.Overall,theINRhasbeendeployedfor44%ofcumulativealignedvolume.

PowerFinanceCorppricedaEUR300m(USD352m)ClimateBondsCertifiedgreendealin2021.TwoissuershavedeployedJPY:VenaEnergypricedagreenbondin2022(JPY14bn/USD122.5m)

andREC(formerlyRuralElectrification

CorporationLimited)pricedathree-tranchegreendealin2024(JPY61.6bn/USD412.4m).

JPYemergedasanattractivepropositionfor

USDandINRare98%ofthe

volumeofGSS+dealsfromIndia

JPY1%EUR1%

INR

44%

USD

55%

Source:ClimateBondsInitiative

ThematicdebtprofileofthefivelargestEMsources

SLB

Green

Social

Sustainability

100%

80%

60%

40%

20%

0%

ChinaSouthKoreaChileIndiaMexico

Source:ClimateBondsInitiative

Greenis85%ofIndia’scumulativealignedGSS+debt

(bondsandloans)volume

USDBillions

SLB

Social

Green

Sustainability

16

12

8

4

0

2015-

20202021202220232024

2019

Source:ClimateBondsInitiative

TheprivatesectorledthegrowthoftheGSS+marketinIndia

Non-financialcorporateFinancialcorporateGovernment-backedentitySovereignDevelopmentbankLocalgovernment

USDBillions

15

10

5

0

2015-

20202021202220232024

2019

Source:ClimateBondsInitiative

IndiaSustainableDebtStateoftheMarket2024ClimateBondsInitiative7

Indianissuersin2024duetoitslowcarry.

TheIndianGSS+marketaccommodatesdealsofallshapesandsizes.The179aligneddealsoriginatingfromIndiarangefromRenew

Power’sINR640bn(USD7.8bn)2023green

loan,toRattanIndia’sINR160m(USD2.1m)

2021ClimateBondsCertifiedgreenbond.TheaveragedealsizeisUSD314m.Byvolume,thelargestdealsizecategoryisUSD500m-1bn

andaccountsforUSD19bn(34%ofcumulativealignedvolume),whilethesmallestsize

categorycapturingdealsofuptoUSD100misthemostpopulous,including85deals.

Shortertenorsarepreferredbyissuersof

alignedIndianGSS+deals.Thecategory,

includingdealswithtenorsofuptofiveyears,isthelargestbybothnumberofdeals(78),

andvolume(USD17.9bn).ThisreflectsIndia’sconventionaldebtmarketandisasonewouldexpectfromanEMgiveninvestorriskappetite.India’sINR150bn(USD1.8bn)2054sovereign,pricedandtappedinearly2024,andreopenedagaininDecember2024,istheonlydealwithatenorofgreaterthan20years.Indiahas

deployedfive-,ten-,andthirty-yeartenorssofar.Thisisanexcellentexampleofasovereigndevelopingagreenyieldcurvetoactaspricingbenchmarkpavingthewayforothertypesofissuerstoenterthemarket.

Note:thenotcapturedcategorymostly

includesloansforwhichthetenorsarenotnormallydisclosed.

GSS+deals(bondsandloans)fromIndiaaremostlyUSD500morsmaller

USDBillions

CumulativevolumeNumberofdeals

20

15

10

5

0

Upto100m

Dealcount

80

60

40

20

0

100-500m500m-1bn1bnormore

Source:ClimateBondsInitiative

IndianissuersofGSS+tendtofavourshortertenors

CumulativevolumeNumberofdeals

2080

15

60

10

40

USDBillions

Dealcount

5

20

0

0

NotcapturedUpto5Y5-10Y10-20Y>20Y

Source:ClimateBondsInitiative

IndiaSustainableDebtStateoftheMarket2024ClimateBondsInitiative8

Green

Greensignifiesprojects,assets,activities,andexpendituresthatcontributetoclimatechange

mitigation,adaptation,or

environmentalsustainability.

ClimateBondsdefinesgreenfinancebasedonscientificcriteriathatalignwiththegoalsoftheParisAgreementtolimitglobalwarmingtowellbelow2°C,preferably1.5°C.

Markethighlights

?Attheendof2024,cumulativealigned

volumeofgreendebtoriginatingfromIndiahadreachedUSD46.6bn,growthof118%sincetheendof2021(USD21.3bn).

?68Indianissuershavepriced162alignedgreendeals.

?CumulativeglobalalignedgreenvolumestoodatUSD3.5tnbytheendof2024.

?In2024,22alignedgreendealswith

combinedvolumeofUSD6.4bnoriginatedfromIndia.

?Indiaisthe18thlargestsourceofalignedgreendebt,andthethirdlargestEMsource,afterChina(USD442.4bn),andSouthKorea(USD55.3bn).

78%ofalignedgreenbond

volumefromIndiaisearmarkedforlow-carbonenergy

Waste1%

Water2%

Resilience2%

Landuse2%Adaption&

Low-carbon-Energy

82%

Low-carbontransport9%Low-carbonbuildings3%

Source:ClimateBondsInitiative

Greenscorecard-India

2024

Cumulativesince2006

Alignedvolume

USD6.4bn

USD46.6bn

Numberofdeals

22

162

Averagedealsize

USD292m

USD287m

Non-financialcorporateleadalignedgreenvolumesfromIndia

Non-financialcorporateFinancialcorporateGovernment-backedentity

SovereignDevelopmentbankLocalgovernment

20

USDBillions

15

10

5

0

2020

2021

2022

2015-

20232024

Source:ClimateBondsInitiative

2019

CompositionofalignedIndiangreendebtmarket

Shareofvolume

Numberof

dealsandtaps

Shareofdeals

USDbn

Instrumenttype

BondLoan

Total

28.661%

18.039%

46.6

69%31%

112

50162.0

byinstrumenttype

?Low-carbonenergyhasbeennamedamongtheUoPcategoriesof131ofthe162aligneddealsorsubsequenttranchesofdeals

originatingfromIndia.ThisisequivalenttoUSD36.3bnofcapital.Thenextlargestshareof11%(USD5.2bn)iscommittedtolow-carbontransport,whichismentionedamongtheeligiblecategoriesof25deals.ThedecarbonisationofIndiaandits

industrieswillrequiremorecapitalacrosstheboard,andthereisgreatpotentialinalltheUoPcategories.

?Indiannon-financialcorporateshavepriced66%ofthealignedgreenvolumeoriginatingfromthecountry.

?54%ofthealignedgreenvolume

(USD25.1bn)hasbeenpricedinUSD,whileINRaccountsfor44%(USD20.6bn).JPY

(USD535m)andEUR(USD352m)are1%each.

Greenloans

AmongthealignedgreenvolumecapturedbyClimateBondsoriginatingfromIndia,loansmakeup39%.InclusioninClimateBonds

datasetsreliesonClimateBonds’abilitytodeterminealignmentoftheUoPwiththerelevantmethodology.

Loansgenerallyhavemoreopaquedisclosuregiventheytendtobeprivately(often

bilaterally)arranged.Thismeansitisoften

hardto(i)discoverrelevantdeals,and(ii)

findessentialinformationaboutthedeals,

includingdetailssuchasloanamountand

term,aswellasUoP.ClimateBondstracks

greenloanswithintheClimateBondsGreen

BondDataset(GBDS),butwiththecaveatthatthisdataiscollectedonabest-effortsbasis

(unlikegreenbonds,wheretheconfidencelevelismuchhigher)anddealsmaytakelongertobe

IndiaSustainableDebtStateoftheMarket2024ClimateBondsInitiative9

addedtothedatabase.Loanfiguresincludedinthisreportarethereforeindicativeandshouldbetreatedassuch.

AccordingtotheLondonStockExchangeGroup(LSEG)LoanConnectordata,thelabelled

greenloanmarketin2024receivedstrong

interestwith19corporatesraisinganaggregateamountofUSD5.5bn.Whileutilityscale

renewableenergyprojectsdominated,greenloansalsoappearedfromsectorssuchasrealestate,e-mobility,andfinancialservices.Themarketforlabelledgreenloansisdominated

byforeignbanksincludingMUFG,SumitomoMitsuiBankingCorporation(SMBC),HongKongandShanghaiBankingCorporationLimited

(HSBC),StandardChartered,DevelopmentBankofSingaporeLtd(DBS)anddomesticandinternationaldevelopmentfinanceandmultilateralinstitutions.

AmongthegreenloansrecordedonLoan

Connector,thetenorsrangedfromone-yearrevolvingfacilitiesto10+yearsforproject

finance.DealsizesareatleastUSD100m,withforeignbanksunderwritingandsyndicatingtheseloans.

ThelargestgreenloanwasraisedbyNTPC

RenewableEnergyLimited(NTPCREL)for

INR35bn(USD419m)fromPunjabNational

Bank.The15-yearunsecuredloanwithannualrepaymentswasintendedformeetingcapitalexpenditureonanyNTPCRELongoing/newprojects.AsmallergreenloanofUSD27mwas

Independentreviewsfortop5emergingmarketsources

ofalignedgreenbondvolume

Top5

emerging

markets

Cumulative

%Volumeobtaining

Number

%dealsobtaining

alignedgreen

independent

ofaligned

independent

bondvolume

review

greendeals

review

China

442.4

82%

1954

70%

SouthKorea

55.3