Fitch assigns 'stable' grade to IDBI Bank's green bonds

New Delhi: Fitch Ratings has assigned 'stable' grade to IDBI Bank's USD 350 million green bonds.

"Fitch Ratings has assigned India-based IDBI Bank's (BBB-/stable) USD 350 million senior unsecured notes due November 2020 a final rating of BBB-," Fitch Ratings said.

The tenor of the issue is five years and the notes are issued by IDBI Bank's Dubai International Financial Centre branch.

"IDBI's systemic importance is high, which is driven by its relatively large size and asset share, the government's 76.5 percent stake, and IDBI's role as a strategic shareholder in setting up vital financial institutions and policy banks," said the ratings agency.

IDBI, along with other banks, has received regular capital infusion from the government.

IDBI Bank is the first state-owned bank to raise USD 350 million by selling green bonds where proceeds are used for refinancing of clean energy projects in India.

The projects pertain to wind and solar energy, biomass, water recycling, energy distribution and management.

Besides, the proceeds will be used for sustainable transport, the bank had said.