Issuers in India have raised labelled and unlabelled green bonds worth $42.9 billion in the power sector from January 2014 to March 2023, the latest BloombergNEF report stated. When the issuer is known to exclusively operate in the renewable energy sector, but the instrument is not 'green' certified, it is called an 'unlabelled' bond.
Meanwhile, domestic power producers — Greenko, ReNew and Continuum being among the top five — account for close to 80 percent of the green bonds in India in the period covered. NHPC and Adani Green are the other two of the top five green bond issuers in India.
"The annual share of the top five issuers continued to come down for the third consecutive year indicating that more companies are now participating in the green bond market," the report stated.
The report stated that in 2022, the top five issuers of green bonds in the country have a share of 62 percent.
Also Read: Sebi lists dos and don'ts relating to green debt securities to avoid occurrences of 'greenwashing
These are some other highlights from the report's excerpt on 'India Green Bonds':
Green bonds are government - or company-issued borrowings and securities that are floated to fund and finance government debt. Just like any other debt instrument and conventional fixed-income security that it is bought by investors who provide the principal that the issuer requires and receive interest upon the maturity of the bonds.
The way that green bonds differ from more conventional securities is that the issuer pledges to use the amount raised purely towards financing projects that have a net positive contribution to the environment.
The Finance Minister, in this year's Union Budget, announced Rs 35,000 crore for priority capital investment towards energy transition and net zero objectives and energy security by the ministry of petroleum and natural gas. Later, she clarified that the money allotted to energy security and transition is not a subsidy, which is being given indirectly. "There are two objectives of allocating this money: To make a transition from fossil fuel to renewable energy and to make sure that our strategic reserves are all filled up adequately," she had said.
At the beginning of this year, the government had announced an issuance calendar for Sovereign Green Bonds (SGrBs) in order to mobilise resources for green infrastructure. It is expected to raise Rs 16,000 crore in two tranches. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy, it said.
On January 25, the government sold its first SGrBs worth Rs 8,000 crore at yields below comparable government bonds. The Reserve Bank of India auctioned Rs 4,000 crore of five-year bonds at a coupon rate of 7.1 percent and another Rs 4,000 crore of 10-year bonds at a 7.29 percent.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
PM Modi visits Ram Mandir for first time since 'Pran Pratishtha', offers prayers before roadshow
May 5, 2024 8:59 PM
Visiting temples, obliging selfie requests, jabbing rivals – Kangana Ranaut is wooing voters on campaign trail
May 5, 2024 8:23 PM