E-INVESTING

Institutional investors, who always focussed on G (governance), are now increasingly engaging with investee companies on the E (environment) and the S (social) part

- ANAND ADHIKARI

THE BIG CHALLENGES

Awareness on E is lacking

Hedging risk for raising foreign currency bonds

Not many ESG-compliant companies

Regulatory framework is still evolving

Green washing (money going to projects not certified green)

Reporting and compliance challenges, companies not disclosing much

In March, Hero Future Energies, the renewable energy venture of the Hero Group, received an overwhelming response for its overseas green bonds with investors pouring in over $3 billion for expansion of its renewable energy portfolio abroad as well as in domestic market. The six-year maturity money was raised from insurers and institutional funds at a coupon rate of 4.25 per cent.

Another renewable energy company, Hyderabad-based Greenko Energy Holdings, mobilised close to a billion dollars through green bonds for refinancing its debt. Though renewable players are finding acceptance amongst global investors, Indian issuers are a bit slow in tapping the huge global pool of green investors.