Gift City sovereign green bonds face currency hurdle
6 days, 7 hours ago

Gift City sovereign green bonds face currency hurdle

Live Mint  

Foreign investors in Gujarat's Gift City have yet to warm up to sovereign green bonds five months after the regulatory green light, deterred by their rupee denomination, cooling enthusiasm for green energy, and rising yields in the west. However, investors are not keen on buying rupee-denominated sovereign green bonds in Gift City since they are any way free to buy them outside it, official cited above said. “The saleability of rupee green bonds in Gift City currently looks dim, with investors likely to be unwilling to take lower coupon rates associated with such instruments amid rising yields of conventional issuances globally," said Jayesh Mehta, vice-chairman and chief executive of DSP Finance. Another bond dealer said that issuing a rupee bond in an offshore jurisdiction like Gift City could also give rise to other offshore markets outside RBI jurisdiction launching rupee-denominated green bonds which are settled in dollars.

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Centre may increase green bond target by 25% to ₹25,000-26,000 crore next year to fund renewable energy projects
1 month ago

Centre may increase green bond target by 25% to ₹25,000-26,000 crore next year to fund renewable energy projects

Live Mint  

New Delhi: The government plans to raise ₹25,000-26,000 crore through sovereign green bonds in the next fiscal year, marking an at least 25% increase from its ₹20,000 crore target for FY25, to boost financing for climate-friendly projects, two people familiar with the matter told Mint. Investor interest The government issued sovereign green bonds of ₹20,000 crore in FY24 and planned …

Govt may issue sovereign green bonds in second half of FY25
11 months, 1 week ago

Govt may issue sovereign green bonds in second half of FY25

Live Mint  

New Delhi: The government is expected to issue sovereign green bonds during the second half of the next fiscal year, Ajay Seth, secretary in the department of economic affairs, said on Thursday. Although the interim budget, presented by finance minister Nirmala Sitharaman today, did not specifically mention green bonds, their issuance is expected in the third or fourth quarters of …

Next sale of sovereign green bonds likely by September
1 year, 11 months ago

Next sale of sovereign green bonds likely by September

Live Mint  

India may sell sovereign green bonds for the second year starting 1 April to fund investments in solar, wind and hydro and other projects that mitigate the impact of carbon emissions. The government plans to sell ₹15,000-16,000 crore of the green bonds in the second half of the next fiscal to fund public sector projects, two people familiar with the …

Sovereign green bonds: Know the risks and rewards
1 year, 11 months ago

Sovereign green bonds: Know the risks and rewards

Live Mint  

The Reserve Bank of India recently auctioned its maiden sovereign green bonds worth ₹8,000 crore. These comprised sovereign green bonds 2028 and sovereign green bonds 2033 with a cut-off yield of 7.10% and 7.29%, respectively, a few basis points lower than the G-sec of the same tenure. Those who are interested in knowing how the funds are invested, note that …

India to enter green bond market with $1 billion debut auction on Wednesday
1 year, 11 months ago

India to enter green bond market with $1 billion debut auction on Wednesday

Business Standard  

India to enter green bond market with $1 billion debut auction on Wednesday If this sovereign auction is over-subscribed and the cutoff yield materially lower than regular government bonds, it would encourage larger green issuance next year Premium This offering will be sold in 5-year and 10-year tenors via a uniform price auction on Jan. 25; a second, similar offering …

Govt bond market likely to see an explosion of new products in FY24
1 year, 11 months ago

Govt bond market likely to see an explosion of new products in FY24

Business Standard  

Govt bond market likely to see an explosion of new products in FY24 All the state governments now have a significant presence in the bond market, having sharply lowered their dependence on the Centre for borrowing ever since Covid struck Premium The volumes are expected to rise soon in FY24, from the Rs 16,000 crore earmarked to be raised from …

Does India really need to issue sovereign green bonds?
2 years, 2 months ago

Does India really need to issue sovereign green bonds?

Live Mint  

Sovereign green bonds are the next big thing on the agenda that was unveiled as part of this year’s Union budget announcements. Arguably, the same goal can be achieved even without calling it a ‘sovereign green bond’ by just allocating resources for green projects with the same outlay. Hence, before the launch of green bonds, the Centre would need to …

The test for India’s sovereign green bonds
2 years, 2 months ago

The test for India’s sovereign green bonds

Live Mint  

The Indian government is all set to debut in the green bonds market soon, as laid out in the Union Budget earlier this year. Corporates have been issuing green bonds in India for a few years in a growing market, but the country’s global share stood at just 1% in the first half of 2022. Big corporations such as Adani …

Green bonds: The pandemic is driving a boom in investments to fix the climate crisis
4 years, 3 months ago

Green bonds: The pandemic is driving a boom in investments to fix the climate crisis

CNN  

London CNN Business — Green bonds may have a starring role in the recovery from the coronavirus recession. “While financings related to pandemic response efforts will subside as the worst of the crisis fades, an enduring focus on environmental and social issues will continue to prompt public and private sector issuers alike to consider issuing debt instruments tied to specific …

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