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Green Bonds

Context

The Centre may borrow a total of ?20,000- 25,000 crore through sovereign green bonds in FY25.

About

What Are Green Bonds?

  • Category:Debt Instruments
  • Simply put, Green bonds are financial instrumentsthat finance green projects and provide investors with regular or fixed income payments.
  • Inception:The first green bondwas issued in 2007 by the European Investment Bank, the EU’s lending arm.
  • Issued by: Green bonds are the bonds issued by any sovereign entity, inter-governmental groups or alliances, and corporates.
  • Aim:The proceeds of the bonds are utilized for projects classified as environmentally sustainable.

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