23th February 2024 (8 Topics)
1
Feb
2
Feb
3
Feb
5
Feb
6
Feb
7
Feb
8
Feb
9
Feb
10
Feb
12
Feb
13
Feb
14
Feb
15
Feb
16
Feb
17
Feb
19
Feb
20
Feb
21
Feb
22
Feb
23
Feb
24
Feb
26
Feb
27
Feb
28
Feb
29
Feb
Green bond issuances fall in FY24
Context
Fundraising through green corporate bonds by companies and banks fell to a two-year low so far in the current financial year due to low investor appetite and little incentive for the issuers.
What are Green Bonds?
- Category: Debt Instruments
- Green bonds are fixed-income securities that are dedicated only to projects with environmental advantages or climate and environment-related objectives.
|
Green bonds differ from conventional fixed-income securities in one aspect that the issuer pledges to use the proceeds to finance projects meant for positive environmental or climate effects. |
The numbers
- Green bonds worth Rs 500 crore were issued so far in this financial year, as compared to Rs 739 crore in the previous financial year.
- In the financial year 2021-22, green bonds worth Rs 2,677 crore were issued.
Why the low appetite?
- In India, there is no obligation to invest in these green bonds and there are also no dedicated companies to invest in them. As a result, the appetite of the Indian investor for such bonds has been low.
- Also, green bonds are new in India and hence, pricing based on the international issue of bonds becomes difficult.
More Articles
Courses
Study
Notes
Home
Resources
More
