The Centre and the Reserve Bank of India (RBI) are expected to finalise the framework for sovereign green bonds in a few months. Globally, green bonds worth more than $500 billion were issued in 2021, according to Climate Bonds Market Intelligence. The green bonds will likely attract these new investors, reducing pressure on the debt market from high government borrowings in the current fiscal year. Finance minister Nirmala Sitharaman had announced in her February 1 budget speech that the government will issue sovereign green bonds in FY23 as part of its overall market borrowing to mobilise resources for green infrastructure. Its full-year gross borrowing is budgeted at 14.31 lakh crore.The green bonds may be priced lower than regular government debt, another official said.

Source: Economic Times April 06, 2022 22:45 UTC