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Modi’s $200 Billion Renewable Push to Fuel Green Bond Bonanza

  • Citigroup sees companies tapping market aggressively
  • Moody’s predicted 2016 global issuance of up to $70 billion
An employee inspects solar panels, part of a solar power microgrid, in the village of Dharnai in Jehanabad, Bihar, India, on Thursday, July 9, 2015. While Prime Minister Narendra Modi's ambition has led billionaires such as Foxconn Technology Group's Terry Gou to pledge investment, the question remains whether the 750 million Indians living on less than $2 per day can afford or will embrace green energy.
Photographer: Prashanth Vishwanathan/Bloomberg
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A $200 billion spending push by India to boost renewable power output will help drive a surge in issuance of green bonds, according to a unit of Citigroup Inc., the country’s largest arranger of offshore note transactions in 2016.

With governments around the world last year agreeing to a new global climate accord, Prime Minister Narendra Modi’s administration has pledged to foster economic production in the world’s second-most populous nation that is less carbon intensive. It plans to boost renewable energy capacity to 175 gigawatts by 2022 from a current level of just 37 gigawatts, and is aiming to source at least 40 percent of its energy mix from clean sources such as wind and solar by 2030.