RBI to raise Rs 200 billion through sovereign green bonds in FY 24-25
ECONOMY & POLICY

RBI to raise Rs 200 billion through sovereign green bonds in FY 24-25

The Reserve Bank of India (RBI) has announced plans to raise Rs 200 billion through sovereign green bonds in the second half of the fiscal year 2024-25. The funds will be raised in four equal tranches of Rs 50 billion, with subscription windows and tenors as follows:

- First tranche: November 25-29, 2024, with a 10-year tenor. - Second tranche: December 9-13, 2024, with a 30-year tenor. - Third tranche: January 27-31, 2025, with a 10-year tenor. - Fourth tranche: February 17-21, 2025, with a 30-year tenor.

The RBI has the option to exercise a greenshoe provision of up to Rs 20 billion for each auction. Additionally, 10-year sovereign green bonds will be accessible to Non-Resident Indians (NRIs) via the International Financial Services Centre (IFSC) in GIFT City, Gandhinagar.

This follows the government’s initial sovereign green bond issuance of Rs 160 billion completed in February 2023. The funds raised through green bonds are earmarked for public sector projects across nine sectors, including renewable energy, sustainable water management, clean transportation, and pollution control, aimed at reducing the economy's carbon intensity.

In a related development, NSE Indices launched India’s first sovereign green bond indices in March 2023, the Nifty India Sovereign Green Bond Jan 2028 and Jan 2033 Indices, to track the performance of these securities.

The Securities and Exchange Board of India (SEBI) has also introduced regulatory protocols for listing green debt securities, including provisions for ‘yellow bonds,’ which focus on solar energy projects and related industries. The partnership with CleanMax highlights the increasing trend of companies transitioning to renewable energy to meet sustainability goals. CleanMax has been active in similar collaborations, including developing a 125.4 MW wind-solar hybrid project for Google and a 33 MW renewable energy project for Equinix to power their Indian operations. (Mercom)

The Reserve Bank of India (RBI) has announced plans to raise Rs 200 billion through sovereign green bonds in the second half of the fiscal year 2024-25. The funds will be raised in four equal tranches of Rs 50 billion, with subscription windows and tenors as follows: - First tranche: November 25-29, 2024, with a 10-year tenor. - Second tranche: December 9-13, 2024, with a 30-year tenor. - Third tranche: January 27-31, 2025, with a 10-year tenor. - Fourth tranche: February 17-21, 2025, with a 30-year tenor. The RBI has the option to exercise a greenshoe provision of up to Rs 20 billion for each auction. Additionally, 10-year sovereign green bonds will be accessible to Non-Resident Indians (NRIs) via the International Financial Services Centre (IFSC) in GIFT City, Gandhinagar. This follows the government’s initial sovereign green bond issuance of Rs 160 billion completed in February 2023. The funds raised through green bonds are earmarked for public sector projects across nine sectors, including renewable energy, sustainable water management, clean transportation, and pollution control, aimed at reducing the economy's carbon intensity. In a related development, NSE Indices launched India’s first sovereign green bond indices in March 2023, the Nifty India Sovereign Green Bond Jan 2028 and Jan 2033 Indices, to track the performance of these securities. The Securities and Exchange Board of India (SEBI) has also introduced regulatory protocols for listing green debt securities, including provisions for ‘yellow bonds,’ which focus on solar energy projects and related industries. The partnership with CleanMax highlights the increasing trend of companies transitioning to renewable energy to meet sustainability goals. CleanMax has been active in similar collaborations, including developing a 125.4 MW wind-solar hybrid project for Google and a 33 MW renewable energy project for Equinix to power their Indian operations. (Mercom)

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