Latest news with #greenprojects
Khaleej Times
3 days ago
- Business
- Khaleej Times
Indian companies raising funds through qualified institutional placement route
Question: I believe that many banks and large companies in India are raising funds by tapping the primary market through what is called the QIP route. Some well-known private companies are raising funds to finance green projects. I would appreciate it if you could throw some light on this fund raising exercise. ANSWER: QIP stands for Qualified Institutional Placements. It is an avenue for raising capital that allows listed companies to issue equity shares, fully and partly convertible debentures or any other security. The equity shares, debentures and other securities are subscribed by Qualified Institutional Buyers (QIBs). However, warrants which are convertible into equity shares cannot be issued under this route. The Securities and Exchange Board of India considers QIBs as institutional investors that possess the experience and financial muscle to evaluate and invest in the capital market. It has been observed that there is a spurt in QIP activity when the secondary market is bullish. A few weeks ago, Indian banks, Punjab and Sind Bank and Indian Overseas Bank raised capital through the QIP route. A few well-known private companies listed on the Indian stock market have also raised substantial funds through this route in the recent past. Public sector banks have been raising funds through QIPs to bolster their capital base, raise capital to finance their expansion plans and comply with shareholding regulations of the Reserve Bank of India. Question: With India putting emphasis on clean energy, will it be able to get access to minerals and metals which are critical for production of turbines, solar panels and electric vehicle batteries? ANSWER: India holds two licences from the International Seabed Authority (ISA) which is a body set up under the UN Convention on the Law of the Sea that regulates all mineral related activities on international sea beds. The first licence is for an area spread over 75,000 square kilometres in the Indian Ocean which is considered to be rich in polymetallic or manganese nodules, which are packed with minerals like iron, manganese, nickel, cobalt and copper. The second licence, valid till 2031, covers 10,000 square kilometres where three tectonic plates converge. This zone holds polymetallic sulphides, which are rich in nickel, cobalt, zinc, manganese, copper rare earth and platinum-group elements. Experts believe that minerals can be extracted from the oceans to meet future demands of rare minerals with minimal ecological impact. Researchers are mapping biodiversity to establish a baseline for assessing environmental impact and ensure sustainable mining. The Ministry for Earth Sciences is building an indigenous research vessel which will deploy buoys and submersibles to collect samples and use seismic waves to locate minerals on the sea bed. A Deep Ocean Mission has been set up to develop a deep sea mining system and cutting-edge technologies. This is the only way by which India can become self-sufficient in minerals and rare earths which are critical to clean energy transition. Question: Recently there was a report on Indian television channels in respect of a company which defrauded two state run financial institutions and diverted funds received as loans for personal purposes. Are auditors of the company not responsible for exposing this diversion of funds? What steps are being taken in this regard? ANSWER: Auditors are certainly responsible for detecting frauds and bringing them to the notice of shareholders and regulatory authorities. In the past, The Institute of Chartered Accountants of India has taken firm measures to bring the errant auditor to book. Likewise, ICAI will now review through the Financial Reporting Review Board the financial statements and statutory audit reports of the company which has allegedly committed the fraud. If allegations are found to be true, the disciplinary committee of the Institute will take action against the auditor. Stringent measures are being taken by the Institute from time to time in appropriate cases to ensure auditor accountability. In this financial year, the audit rotation policy will come into play and mandatory rotation will have to be done so that the same firm of auditors does not audit the financial statements of the company for more than ten years. Well governed companies listed on stock exchanges in India are currently in the process of evaluating different audit firms. These companies are adopting a more structured and competitive process than a decade ago before selecting the new firm of auditors. Firms are being evaluated based on multiple dimensions like the quality and credibility of the audit team, especially the lead partner. Prior experience with similar businesses is given due weightage. Technology is another key differentiator. Companies now expect automation, analytics, and tech-enabled audits. Another key factor which audit committees of companies are taking seriously is the independence of auditors by ensuring that apart from the audit assignment, the same firm does not get other professional work which would compromise their independence. The writer is a practising lawyer, specialising in corporate and fiscal laws of India.
Zawya
4 days ago
- Business
- Zawya
Togo: African Development Fund and the Republic of Togo Sign Partial Credit Guarantee Agreement to support mobilization of EUR 200 million Sustainable Loan
The African Development Bank Group ( and the Government of Togo have signed a partial credit guarantee agreement to support the country's mobilization of a sustainable financing facility of €200 million. Provided by the African Development Fund, the concessional lending arm of the African Development Bank Group, this partial credit guarantee will enable the government of Togo to leverage its country performance-based allocation by four times to raise €200 million from international commercial lenders including Legal&General (L&G) and Deutsche Bank. The African Development Bank is lead arranger. Funds mobilized under the partial credit guarantee will be allocated to green and social projects including climate adaptation, biodiversity preservation, sustainable agriculture, access to clean energy and pollution control. This is in line with Togo's Sustainable Financing Framework as well as the country's 2020–2025 Government Roadmap, which prioritizes inclusive growth and climate-resilient development. "This innovative operation is the result of the strategic guidance provided by His Excellency Faure Essozimna Gnassingbe, President of the Council, aimed at mobilizing innovative and sustainable financing solutions to support Togo's development program. By securing this 20-year sustainable loan, we are sending a strong signal to international investors about the strength of our economic governance, our financial credibility, and our commitment to developing the country in line with the Sustainable Development Goals," added Essowè Georges Barcola, Minister of Economy and Finance of the Republic of Togo. "This transaction marks a significant milestone in Togo's sustainable development journey. By leveraging the Fund's guarantee products, Togo is not only accessing long-term, affordable capital but also enhancing its visibility among international investors. This operation is strengthening confidence in the country's credit profile and lays the groundwork for future market-based financing under increasingly favorable conditions,' said Solomon Quaynor, Bank Group Vice President for Private Sector, Infrastructure and Industrialization. Jake Harper, Senior Investment Manager, Asset Management at L&G said, 'Channeling debt financing for sustainable outcomes will generate momentum towards bridging the $4 trillion annual SDG funding gap. L&G is proud to have partnered with the Fund as its first non-bank beneficiary lender, and the Government of Togo to support the sovereign's crucial growth agenda. We believe these transactions and innovative financing methods are combating the historic risk-return misperception; and demonstrating the compelling investment opportunity for commercial institutional investors to contribute to global sustainable development with investment-grade credit risk.' 'Deutsche Bank is extremely honored to have been selected to work on this landmark inaugural exercise for the Republic of Togo together with our partners at L&G, as well as the African Development Fund, and also Global Sovereign Advisory, Financial Advisors to the country,' said Maryam Khosrowshahi, Deutsche Bank Managing Director, Chair Global Sub-Saharan Africa, Head Sub-Saharan Africa Coverage. 'Leveraging our notable track record of similarly structured financings as well as our close engagement with the AFDB/ADF and the authorities, we have been able to deliver long term funding to the country at efficient terms and in support of critical green and social projects under their Sustainable Finance Framework.' Approval of this sovereign operation comes as the African Development Fund enters the final stages of its 17 th replenishment process. The project aligns with the Fund's intended shift toward directly accessing capital markets. 'This transaction also showcases the innovative use of the ADF guarantee to increase financing volumes available for low-income countries, beyond the traditional performance-based allocations. It marks the first use of the Guarantor-of-Record structure with the ADF sharing a portion of the guarantee exposure with highly rated credit insurance partners,' said Hassatou N'Sele, Bank Group Chief financial Officer and Vice-President. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Media Contact: Olufemi Terry Communications and External Relations media@ About the African Development Bank Group: The African Development Bank Group (AfDB) is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information:
Zawya
26-05-2025
- Business
- Zawya
Tahoun Legal Consulting says Egypt intends to increase green investments to $14.7bln in FY2024/25
Arab Finance: Egypt is seeking to increase investments allocated for green projects to 50% of the total public investments in fiscal year (FY) 2024/2025, with a total estimated value of nearly $14.7 billion, Nermeen Tahoun, Founding Partner of Tahoun Legal Consulting, announced. Tahoun highlighted the government's plans during her participation in the Arab Sustainability Expo, held under the auspices of the Arab League. She added that Egypt plans to increase this percentage to 75% by 2030, per the Environmental Sustainability Standards Guide, across all general budget projects. This mover aligns with Egypt's commitment to driving the transition towards a green economy that anchors its position as a regional hub for clean energy and attracts more international investments. The green investments cover multiple sectors, including renewable energy relying on clean sources, like solar and wind, sustainable transportation, as well as the monorail projects in the New Administrative Capital (NAC) and 6th of October City. Green projects also include water resource management, seawater desalination, irrigation system upgrades, and development of solid waste management systems. Tahoun highlighted that foreign direct investments (FDI) in the green hydrogen sector reached nearly $215.5 billion across 33 projects. She reflected on the Ras Shuqair project, which is valued at $7.7 billion and executed in partnership between the Red Sea Ports Authority, the New and Renewable Energy Authority (NREA), and several companies. This project will have an annual production capacity of one million tons of green ammonia over three phases starting in 2029. Meanwhile, the private sector investments in renewable energy projects stand at around $4.4 billion, with plans to attract $12 billion in Indian investments in green hydrogen and renewable energy projects. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Irish Times
25-05-2025
- Business
- Irish Times
Ryanair quietly drops carbon offset option for passengers on its flights
Europe's largest airline, Ryanair , has quietly dropped a carbon offsetting service for passengers, where for €2 they could partially compensate for the emissions generated by their journey, with the funds going to designated green projects. Ryanair has also dropped is its carbon calculator, a digital tool introduced in 2021 that gave consumers the option of fully offsetting the emissions from their flight. This calculated the emissions per passenger on every Ryanair route and allowed customers to pay the full carbon cost of their flight and contribute to environmental initiatives. Last week, the 'Customer Carbon Offsetting' section of the airline's website, with a detailed explainer and outline of where raised money goes to, was still featuring, but following a query from The Irish Times, it is no longer visible. READ MORE Asked whether the option had been discontinued, the airline said: 'That's correct, as there was very little interest or uptake from passengers.' [ Are the tools for measuring greenhouse gas emissions fit for purpose? Opens in new window ] The carbon calculator was announced with advertising messages stating, 'Ryanair goes greener' and '100 per cent of customer contributions go to our climate projects'. Some months later, its chief executive Michael O'Leary announced only 1 per cent of passengers had taken up the offer, but that subsequently climbed to 3 per cent. The airline declined to indicate the total figure committed by passengers. When extending the option, Ryanair said it was 'committed to being a net carbon neutral airline by 2050 and the expansion of our offset scheme will further pave our way to achieving this goal while helping our environmental partners further their carbon reduction programs'. These contributions, with 'independent certification', supported environmental initiatives including Renature Monchique – a reforestation project in the Algarve ; the distribution of energy-efficient cookstoves in Uganda by First Climate; Balikesir's Wind Power Plant Project in Turkey, and Improved Kitchen Regimes in Malawi powered by CO2 Balance (the latter two in partnership with Shell). By 2022, the airline said hundreds of thousands of customers had contributed more than €3.5 million to environmental projects, while it already had the lowest CO² emissions per passenger per kilometre of any major airline in Europe. It said that by switching to Ryanair, passengers could reduce their emissions. UCC energy analyst Prof Hannah Daly, in response to the Ryanair decision, said 'the climate impact of aviation can't be swept under the carpet'. 'Giving the impression that the highly polluting impact of flying can be made sustainable with token and cheap offsetting schemes is misleading; offsetting schemes don't compensate for the carbon emitted from flying,' she said. Governments were increasingly scrutinising sustainability claims made by companies, 'and this should be welcomed', Prof Daly added. The airline, which is the biggest aviation emitter in Europe, has also committed to scaling up the use of sustainable aviation fuels. But it has fallen foul of advertising authorities on its green claims and carbon offsetting. It has repeatedly referred to itself as the ' greenest and cleanest airline in Europe' . [ 'All we hear from Michael O'Leary is climate change denial' Opens in new window ] In 2020, a claim in an advertisement that Ryanair is 'Europe's ... lowest-emissions airline' was found to be misleading by the UK's advertising regulator. Also in 2020, Ryanair dropped two carbon-offset projects funded by passengers after claims they do little or nothing to reduce total emissions. The airline dropped a tree-planting scheme in Ireland before a single sapling was planted, and pulled funding from a whale-watching project. Critics said the schemes were 'woefully inadequate' at cancelling out the massive amount of greenhouse gas Ryanair produces each year. After conducting an investigation into CO² compensation claims in the airline industry, the Netherlands Authority for Consumers and Markets (ACM) accused Ryanair in 2023 of using misleading sustainability claims. Statements such as 'Fly greener to [X destination]' might give the wrong impression that consumers can fly 'green' with Ryanair, it ruled. Also, it rejected claims suggesting offsetting emissions would lead to sustainable flights. Edwin van Houten, director of ACM's consumer department, said: 'Businesses must be honest and clear about the sustainability claims they make. 'Even with CO²-compensation schemes, flying remains a highly polluting way of travelling. Airlines may offer CO² compensation schemes, but they cannot give the impression that CO² compensation will make flying sustainable.' [ Can the aviation industry really go green? Opens in new window ] Ryanair then implemented changes to its website, including adding a clear message that CO² compensation does not make flying itself more sustainable. Messages such as 'Fly greener to […]' were changed to factual messages such as 'compensate your estimated CO² emissions'. In addition, icons such as green leaves were removed.
Bloomberg
07-05-2025
- Business
- Bloomberg
Nigerian Government Plans Two Green-Bond Offerings This Year
Nigeria plans to offer two green bonds before the end of the year as it seeks to fund an ambitious economic-transformation plan, Environment Minister Balarabe Abbas Lawal said. The debt will be sold this month and in October, Lawal told reporters in the capital, Abuja, on Wednesday. 'The funds will service only green projects across to the country.'
