India's maiden sovereign green bonds yields set 6 bps below current benchmark bond

While there have been many green bond issuances by Indian companies in international bond markets, this was the first sovereign issuance by India worth INR 16,000 crore. In doing so, India joins a list of approximately 25 other countries that have issued similar bonds. The results of the first tranche of INR 8000 crore are priced at yields below comparable sovereign non-green bonds, indicating a greenium (green-premium).

The range of activities and projects for which proceeds can be used is fairly comprehensive. Will there be a skew towards those activities (such as adaptation) that find raising capital on commercial terms challenging?