Centre likely to issue green bonds worth over INR 25,000 crore in FY25
Notable because
India issued its first sovereign green bonds in FY23 over two tranches, raising INR 16,000 crore. Subsequently, another INR 20,000 crore was raised in FY24.
The union government now plans to raise sovereign green bonds worth another INR 25,000 crore in this fiscal year to finance green and sustainable projects. This indicates a progressive increase in government green bond issuances and reinforces India’s commitment to combating climate change.
What to look out for in the months ahead
In which sectors will the proceeds of these green bonds be invested? Will these bonds have a pricing advantage versus conventional sovereign bonds? Moreover, will the inclusion of Indian government securities in JP Morgan and Bloomberg bond indices help stimulate foreign investor interest in these bonds?