Government may issue green bonds for up to rupees 25000 crore in FY 25
Government may issue green bonds for up to rupees 25000 crore in FY 25
Current Affairs Daily Articles & Editorials
La Excellence IAS Academy | April 15, 2024
| Syllabus: GS-III, Subject: Economy, Topic: Financial markets, Issue: Green Bonds. |
Context: India plans to increase the sale of green bonds to finance sustainable infrastructure projects this fiscal year.
Synopsis:
- Demand for sustainable bonds is high in the market, leading to increased borrowing through green bond instruments.
- Including Indian government bonds in international indices has attracted foreign portfolio investors, boosting interest in Indian government securities.
Prelims Connect (Terminology in news):
| Green Bonds:
● Green bonds fund eco-friendly projects like renewable energy. ● Introduced by development banks in 2007, expanded to include corporates in 2013. ● The Securities and Exchange Board of India regulates issuance for transparency. ● Benefits include enhanced issuer reputation and cost-effective capital. ● Crucial for financing sunrise sectors like renewable energy, promoting sustainable growth. |
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