Page 2 - Green Bonds

Sovereign green bonds for NRIs offer credit-risk-free returns in long term

Investors should be mindful of exchange rate risk and limited liquidity in secondary market

Rs 5,000 cr sovereign green bond sale to test demand amid higher rates

The debut sale in January raised 80 billion rupees, garnering a so-called greenium of six basis points over the benchmark yield

FY24 sovereign green bonds for investments by NRI added to FAR list

The government plans to borrow Rs. 20,000 crore through green bonds in the current financial year

Green finance market size could be $5.6 trn by 2047

India's commitment to the Paris Accord is not just a survival goal. It's India's opportunity to catapult itself among the "Great Powers"

EU approves world's first green bond standards to avoid greenwashing

Europe is the world's biggest issuer of green bonds, accounting for more than half of global volume in 2021, though issuance is still only 3% to 3.5% of the overall bond market

Nabard plans to raise Rs 5,000 crore through green bonds in H2FY24

Shaji K V, chairman of Nabard, said the organisation is now focusing on documenting the impact and, in turn, ensuring transparency

30-year sovereign green bonds may attract insurance companies, not banks

A report by Nomura expressed disappointment at the government's sporadic issuance of green bonds, stating it has led to a relative lack of liquidity in these securities

REC to increase loan portfolio of green projects to over Rs 3 trn by 2030

State-owned REC Ltd Chairman and Managing Director Vivek Kumar Dewangan on Wednesday stressed on the commitment to increase its loan book of green projects by ten times to more than Rs 3 lakh crore by 2030. Dewangan chaired the annual general meeting on Wednesday, which was attended by all directors on the board of the company. Many shareholders were present at the meeting through video conferencing. At AGM he said, "REC is committed to increase its present loan portfolio of Green Projects to the extent of more than ten times by the year 2030 amounting to Rs 3 lakh crore." The REC has been known for its rural electrification efforts; now it would be known for its Renewable Energy (RE) focused initiatives including solar, wind, hybrid and e-mobility projects, as well as new areas like green hydrogen, green amonia projects, round the clock projects involving bundling of RE with thermal power and ethanol manufacturing, he pointed out. He also said that while reposing faith in REC, th

Govt may not issue green bonds this fiscal due to lack of premium

"The government is not very keen to issue green bonds because of a lack of premium for such issuances. It had hoped for over 20 basis points of premium in the first auction," said the official

PFRDA to allow funds to invest in sovereign green bonds: Chairman Mohanty

Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty on Tuesday said the regulator will allow pension funds to invest in sovereign green bonds. The government is expected to issue sovereign green bonds in the second half of the current financial year as part of the overall market borrowing programme. Last financial year, the government raised Rs 16,000 crore from the maiden issuance of Sovereign Green Bonds (SGrBs) for funding public sector projects seeking to reduce carbon emissions. The regulator will allow pension fund to invest in sovereign green bonds as and when issued, Mohanty said. Currently, there are 10 pension fund managers that manage funds under the National Pension System. Talking about Atal Pension Yojana (APY) saturation drive, Mohanty said 29 lakh new subscribers have been enrolled under the scheme during the first quarter of the current financial year. The regulator has set a target of 1.3 crore new subscribers to be added under the

REC Limited lists $750-mn green bonds on int'l stock exchanges at GIFT City

With this listing, the cumulative ESG labelled bonds listed on IFSC exchanges has crossed $10 billion," Srinivas said.

Bumpy ride ahead for green deposits with questions raised about workability

The RBI's framework for green deposits is well meant but raises many questions on its workability

Renew Power planning to raise $400 mn in green bonds to refinance old loans

Early this month, Reliance Industries raised $5 billion for its telecom and new energy projects

Tiger bonds will encourage private capital participation in conservation

Innovative finance solutions are needed to encourage private citizens to take up ecological responsibility

RBI announces guidelines to accept green deposits by banks, NBFCs

The central bank has identified nine sectors in which the proceeds from these green bonds must be used. They include renewable energy and green transport

State-owned NBFC firm REC raises $750 mn through issuance of green bonds

State-owned non-banking finance firm REC Ltd has raised USD 750 million through issuance of green bonds. The expected settlement date for these bonds is April 11, 2023. "REC Ltd under its USD 7 billion Global Medium Term Note Programme, has priced and issued USD 750,000,000; 5.625 per cent green bonds on April 3," according to a regulatory filing. These bonds will mature on April 11, 2028, and all principal and interest payments will be made in US dollars. The net proceeds from the issue of these bonds will be used in finance, in whole or in part, the eligible green projects, it stated. These bonds will be listed on Global Securities Market of India International Exchange (India INX) and NSE IFSC.

Centre expected to issue Rs 23,764-crore sovereign green bonds in FY24

Govt is already finalising projects and may issue a few such bonds in H1FY24

Centre to borrow 57.55% of its full-year target in H1FY24: FinMin

The government borrowing programme is scheduled to be completed in 26 weekly tranches of Rs 31,000-39,000 crore each

IFC picks up green bonds worth $50 million from Tata Cleantech Capital

Tata Cleantech Capital, the green funding arm of Tata Capital, on Monday said its equity partner International Finance Corporation has picked up its sustainability-linked bonds worth USD 50 million or about Rs 375 crore. The bonds are the first in the country by a private financial institution, and the money will help Tata Cleantech Capital -- a joint venture between Tata Capital and the IFC -- strengthen its position as a leading green financier by funding climate and sustainability projects. The company will use the money to scale up on-lending towards renewable energy projects and diversify into energy efficiency and e-mobility sectors over the next three years, it said, adding this is the first such instrument issued by a private financial institution in the country and will support the shift to a clean energy economy. Aligning with our sustainability goals, IFC's innovative financing structure will strengthen our green financing portfolio apart from helping diversify our ...

What are municipal bonds, and why do investors prefer them over corp bonds?

Municipal bonds are primarily issued to raise money for financing infrastructure projects like building parks, libraries, schools, police departments and community centres