In the Overview, we look at the India Renewables sector where the country’s ambitious climate targets are reflected in the growing status of its green bonds. Renewable energy (RE) USD bonds, being the preferred financing and refinancing tool for independent power producers (IPPs), now account for 36% of the country’s high-yield corporate USD bond universe. They also have a strong presence in Asia’s HY corporate green USD bond market. The market is blooming and investor appetite is growing.

We provide a case study of Adani Green Energy, and study six main topics:  What’s behind the rise of India RE USD bonds?

 What factors determine USD bond valuations?

 What are the most common bond structures?

 How do you judge the quality of RE issuers?

 What about the environmental impact?

 Aside from the environment, what about social and governance considerations?

We initiate coverage of Adani Green Energy with a Neutral fundamental recommendation and open a buy trading call on ADANIG ’24.