Green bonds become flavour of the season as companies go on financing spree

Green bonds refer to bonds issued mainly by power companies to finance energy efficient projects

Green bonds have become the flavour of the season, with firms lining up issuances up to a few billion dollars in the offshore market and some more in the domestic rupee market.
 
Green bonds refer to those issued mostly by power companies to finance energy efficient projects. Addition of “green” in a bond brings a new set of customers who would just invest in green projects. This brings down the cost of funds substantially for the issuer.
 
According to a July 5 report by Reuters, four Indian companies were lining up green bond issuance of up to $2.5