A record US$ 19 billion worth of green capital raised in 2021

At a global scale, US$ 1 trillion worth of green capital was raised by large corporations in 2021 with the Bank of America raising US$ 250 million

April 5, 2022

The Bank of America contributed to US$ 15.65 billion of the total amount of green capital raised in India during the year.

ReNew Power was listed in the US stock exchange for US$ 8 billion and TPG Rise invested in Tata Motors’ EV division.

Adani Green Energy acquired SB Energy’s Renewable Power Portfolio for US$ 3 billion during the year.

Since 2018, Green bonds have only constituted 0.7% of the total bonds issued by Indian banks.

In the year 2021, a record volume of green capital amounting to US$ 19 billion was raised, with media sources revealing that Bank of America participated in raising at least US$ 15.65 billion of the total amount. At a global level, green capital worth US$ 1 trillion was raised by large corporations. Some of the noteworthy deals facilitated during the year include Adani Green Energy’s US$ 3 billion acquisition of the SB Energy Renewable Power Portfolio, the listing of ReNew Power for US$ 8 billion in the US stock market, and TPG Rise Climate Fund’s investment worth US$ 1 billion in the Tata Motors’ Electric Vehicles business among others. 

Since 2015, the Reserve Bank of India (RBI) has identified the renewable energy sector under the ambit of its Priority Sector Lending (PSL) and states have also been issuing green bonds along the same timeline. 2020 saw the non-conventional energy sector receive US$ 4.823 billion (INR 36,543 crore) worth of outstanding bank credit and a total of US$16.3 billion worth of outstanding green bonds being issued. The RBI documents that green bonds have formed only 0.7% of the total bonds issued by banks since 2018, indicating a greater scope for uptake. The Central Bank also documents that green bonds with a tenure of 5-10 years are generally preferred.