India plans Rs 24,000 cr sovereign green bond as economy goes low carbon
India
will issue at least 240 billion rupees ($3.3 billion) in sovereign green bonds
as the country marks a shift towards a low-carbon economy, according to
officials with knowledge of the matter.
The
debut sale may take place in the first half of the fiscal year that starts on
April 1, and a decision to sell more green debt will depend on the response to
the initial issuance, the people said, requesting not to be identified as the
information is private, said.
A
finance ministry spokesman was not immediately available for a comment.
The
South Asian country’s maiden foray into the green bond space comes as it plans
to fund renewable energy projects that will help meet its goal of net-zero
emissions by 2070.
The
government is expecting lower yields on green bonds, as otherwise it sees
little purpose in issuing them, the officials said. The yield on the 10-year
sovereign bond closed at 6.85% on Monday.
The
planned issuance comes amid a global boom in sustainable investments. India is
the world’s third-biggest emitter of greenhouse gases and plans to more than
quadruple its renewable power generation capacity by 2030.
Indian
renewable energy companies raised debt worth 17.6 billion rupees in February,
the most in nearly a year, data compiled by Bloomberg show.
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