India's First Green Bond Sale To Command 'Greenium': Report

According to two government officials, the Indian government has identified 400 billion rupees ($4.92 billion) in projects that may be supported with the revenues and expects to issue its first green bonds at a 'greenium,' with yields below current market rates. For the current fiscal year that ends on March 31, the government intends to raise 160 billion rupees through green bonds. The first tranche, worth 80 billion rupees, is slated for auction on 25th January. The money would go towards "green" initiatives that assist lower the carbon footprint of the economy, including solar, wind, and small hydropower projects. A green premium, or "greenium," on pricing is what the government anticipates will cause yields on sovereign bonds to drop 5–10 basis points (bps) as a result of the enthusiastic response and interest from both international and local investors.