RBI to issue Rs 200 billion in sovereign green bonds in FY 2024-25
The Reserve Bank of India (RBI) has announced the issuance of Rs 200 billion in sovereign green bonds across four equal tranches during the second half of fiscal year 2024-25. These bonds will fund projects in renewable energy, clean transportation, sustainable water management, and other climate-focused sectors.
The first tranche of Rs 50 billion with a 10-year tenor will open for subscription from November 25 to 29, 2024. The second tranche, with a 30-year tenor, will follow from December 9 to 13, 2024. Subsequent tranches, with tenors of 10 and 30 years, will be offered from January 27 to 31, 2025, and February 17 to 21, 2025, respectively. RBI may exercise a greenshoe option of up to Rs 20 billion for each tranche. Non-resident Indians (NRIs) will be eligible to invest in 10-year green bonds via the IFSC at GIFT City, Gandhinagar.
Funds raised will support public sector projects aligned with India’s climate goals, targeting sectors such as renewable energy, pollution control, and sustainable infrastructure. The initiative follows India’s first sovereign green bond issue in February 2024, which raised Rs 160 billion. Complementing this, SEBI has updated its green debt regulations, incorporating “yellow bonds” for solar energy initiatives.
These developments are part of India’s ongoing efforts to reduce carbon intensity and foster a robust green finance ecosystem.