New Delhi, 26 October 2017 – The India Innovation Lab for Green Finance – a group of investors and government representatives that accelerates green finance instruments to meet India’s green infrastructure goals – launched two new instruments that could help catalyze millions of dollars for clean energy in India. The launch is in partnership with the India Lab’s public and private Lab Members, including the Indian Ministry of New and Renewable Energy, the Ministry of Finance, the Indian Renewable Energy Development Agency (IREDA), the Asian Development Bank, ReNew Power, Cyril Armachand Mangladas, HSBC India, KfW Bank, YES Bank, the World Bank, and the development agencies of the French, UK, and US governments, among others. Lab members and other experts have spent the last year vetting and developing the new instruments, to ensure they meet stringent criteria and can help meet India’s green infrastructure goals. The new instruments are:
- Solar Investment Trusts (SEITs): An instrument similar to a mutual fund, which can help small-scale rooftop solar developers in India raise capital at a lower cost of financing. Proposed by Cleanmax Solar, SEITs can mobilize capital worth USD 1 billion within the next five years in key Indian markets.
- Sustainable Energy Bonds (SEBs): Debt instruments that aim to drive impact investment to sustainable energy in India by offering debt exposure, sufficient returns, and standardized impact measures for impact investors. Proposed by cKers Finance, SEBs will create credible benchmarks for impact evaluation, lower transaction costs, and de-risk small-scale lending.