Green bonds issuance likely to swell soon

Proposed RBI guidelines to give a boost to the instruments

Prodded by the Paris Climate Agreement, public sector companies are making a  beeline to raise money through green bonds, a new mode of financing that is increasingly gaining popularity globally.

Some Indian banks and companies have issued the papers in local and overseas markets. Government companies in India and abroad are taking the lead to increase green bond issuances.

Globally, green financing is assuming significance as most major investors are increasingly aligning their books to invest in projects that have a sustainable carbon footprint. The market for green bonds are also expanding, though this is at a nascent stage in