India sells first green bonds at 5-6 basis points below sovereign yields

MUMBAI: India sold its first sovereign environmentally friendly bonds really worth a total of 80 billion rupees ($979.61 million) on Wednesday, at yields below equivalent government bonds, the central bank mentioned in a statement.
The RBI auctioned 40 billion rupees of 5-year bonds at a coupon amount of 7.10%, five foundation details below the five-calendar year sovereign produce. Another 40 billion rupees in 10-year bonds have been marketed at a 7.29%, 6 basis factors beneath equivalent authorities securities.
The proceeds would be made use of for ‘green’ projects this kind of as solar energy, wind and small hydro projects and other general public sector assignments that assistance cut down the economy’s carbon footprint.
Buyers in these bonds do not bear job relevant risks, the federal government specified in its framework produced in November.
A very similar sized auction planned for February 9.
The five-calendar year 7.38% 2027 bond produce was at 7.15%, although the benchmark 7.26% 2032 bond produce was at 7.35% for the duration of the time of bidding.
Forward of Wednesday’s auction, the authorities experienced achieved overseas buyers to gauge desire, and foreign investment constraints on these securities were lifted, Reuters had reported.