The first ever green Indian rupee bond has been issued outside India.
Dubbed “Masala bond”, it is worth 3.15 billion rupees (£31m) and has been issued on the London Stock Exchange by the International Finance Corporation (IFC).
It will be used to finance energy efficiency and renewable energy projects in India and will be invested through the nation’s YES BANK.
According to the Treasury, issuing the debt in London allows the IFC, part of the World Bank Group, to take advantage of the UK’s financial centre and use its expertise.
Harriett Baldwin, Economic Secretary to the Treasury said: “Cementing the UK’s position as the leading global financial centre is an important part of this government’s economic plan.
“As home to both a rapidly growing offshore rupee market and a rapidly growing green bond market, our financial sector continues to be at the forefront of global trends. That’s good for the UK and for our trading partners all around the world.”