The Kerala Infrastructure Investment Fund Board (KIIFB) is planning to mobilise up to ₹1,000 crore through domestic green bond issue for financing infrastructure projects.
KIIFB has invited a request for proposal (RfP) for the appointment of merchant bank/arranger for the proposed fund mobilisation.
Green bonds are used to finance environment-friendly projects.
According to RfP floated by KIIFB on May 25, the green bond issue for raising up to ₹999.95 crore is meant to provide long-term financing to ‘‘infrastructure projects conforming to conservation and maintenance of environment as per Green Energy norms”.
A statutory body created by the State government under the Kerala Infrastructure Investment Fund Act, 1999, KIIFB channelises investment for big infrastructure projects. Amendments to the Act in 2016 empowered it to raise money through financial instruments approved by Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI).
As per the RfP floated on May 25, the Merchant Banker/Arranger for the proposed green bond issue should raise the minimum commitment amount of ₹250 crore.
In 2018-19, KIIFB had issued ‘Masala bonds’ to raise ₹2,150 crore, which was later at the centre of a major political row.