India’s central bank is expected to raise $3 billion through sale of green bonds over the next 12 months.
The Reserve Bank of India may auction green bonds worth $3 billion sometime after September this year. According to media reports, the bank may offer tenures of up 30-40 years, which it believes would attract insurance companies.
In February 2022, India’s finance minister had announced that the government would raise $2.1 billion through the sale of green bonds. The Reserve Bank of India completed a sale of two green bond issues in late January 2023. It raised Rs 80 billion or just over $1 billion across two tenures amidst tremendous response from bidders.
The Bank offered around half a million dollars worth of green bonds at a yield of 7.10% with maturity in 2028. The bond issue attracted bids worth $1.8 billion. Another tranche, with maturity in 2033, was offered at a yield of 7.29% and attracted bids worth $2.6 billion.
Last year, the Indian government issued a document outlining principles for issuance of green bonds as well as use of funds raised. The document is based on the International Capital Market Association’s (ICMA) Green Bond Principles. The document states that proceeds from green bonds issuances must be allocated to eligible projects within two years. Eligible projects include those based on renewable energy, promoting energy efficiency and pollution control. Eligible projects shall be shortlisted by a green finance working committee working under the aegis of the Ministry of Finance.
Green bonds are expected to play a crucial role in India working towards its ambitious goal to achieve 500 gigawatts of renewable energy capacity by 2030.
I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
