The Reserve Bank of India (RBI) has allowed non-resident Indians (NRIs) to invest in the government’s sovereign green bonds (SGrBs) issued for 2023-24. The government plans to borrow Rs 20,000 crore through the bonds in the current financial year.
SGrBs are used to fund environmental projects. “To tap growing environmental consciousness within and outside India, the government issues SGrBs to mobilise resources for green infrastructure and to reduce the economy’s carbon intensity,” says Anshul Gupta, co-founder and chief investment officer, Wint Wealth.
Key features
A SGrB works like a regular central government bond. Interest is paid twice a year at