Planet
50 per cent of the guarantee amount has been ring-fenced for climate finance.
| Company | GuarantCo |
| Sector | Multi-sector |
| Country | India |
| Total Project Cost | USD 15.2m |
| PIDG Commitment |
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| Dates of PIDG involvement |
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Infrastructure development has been identified by the national government as a key enabler in helping India become a USD 7 trillion economy by 2030, as it is seen as a crucial cross-sector pillar to drive efficiency and good governance.
Green bonds are a central finance tool in achieving this. However, regulatory norms in India have typically restricted investments in bonds that are rated lower than AA.
PIDG provided a partial credit guarantee for a listed and rated non-convertible debenture (NCD) bond issuance by Vivriti Capital, an impact focused non-bank financial institution in India. This transaction allows Vivriti to benefit from PIDG’s strong credit rating and therefore expand its access to the capital markets, enabling it to tap into a diversified pool of longer-term institutional debt investors.
This was PIDG’s first capital market transaction in India and aims to be the catalyst for replicable transactions. This issuance is anticipated to be the first of many to enable the scaling and channelling of funds from multi-billion-dollar local insurance companies, pension and mutual funds into the debt capital bond market.
50 per cent of the guarantee amount has been ring-fenced for climate finance.
This transaction unlocks the private capital pool by enhancing the rating of the bond to AA+, enabling participation by insurance and pension funds, with demonstration and replication effects expected.
Vivriti is targeting the maintenance or increase in women in leadership and the workforce at 31 and 32 per cent respectively over five years.
