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Officials have said they will seek a significant “greenium", the premium investors often have to pay for such bonds, to lower the nation’s borrowing costs for funding environmental projects
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In a bid to fund its renewable energy targets, India plans to issue sovereign green bonds worth Rs 16,000 crore in the fiscal year ending March 2023.
The government will share the details for the planned green debt issuance later, according to a finance ministry press briefing on Thursday.
Officials have said they will seek a significant “greenium", the premium investors often have to pay for such bonds, to lower the nation’s borrowing costs for funding environmental projects.
However, this may prove challenging due to the absence of domestic green debt funds and significant exchange-rate risks for foreign investors.
India Inc., though has pushed the pedal on this with companies issuing more than USD 26 billion of debt, primarily for renewable energy projects.