Green Bonds in India

What are green bonds?

Green bonds are debt securities issued by financial, non financial and Public sector undertakings. The resource will be used for 100% green projects and assets.

What are green projects?

1. Renewable energy

2. water and energy efficiency

3. Bio energy

4. Low carbon transports. ( Down-to-earth 2020)

Introduction

India is the second largest green bond market in the world( ET energy world, 2020)

Indian companies involved in green bond market

1. Indian renewable energy development agency((IREDA)    2018

2. Indian Railway finance corporat5ion     2018

3. State Bank of India 2020 100 Million(Ghosh, 2020)

Features of green bonds in India

1. Coupon rate: Fixed

2. tenure: 6 months to 30 years.

Private placements data on corporate bonds
Year	No. of Issues	Amount (Rs. Crores)
2006-07	177	20548.34
2007-08	744	118484.6
2008-09	1041	173281.2
2009-10	1278	212634.9
2010-11	1404	218785.4
2011-12	1953	261282.7
2012-13	2489	361462
2013-14	1920	276054.2
2014-15	2611	404136.5
2015-16	2975	458073.5
2016-17	3377	640715.5
2017-18	2706	599147.1
2018-19	2358	610317.6
2019-20	1787	674702.9
2020-21	1157	442526

References:

1. India becomes second-largest market for Green Bonds with $10.3 billion transactions - ET EnergyWorld. (2020). Retrieved 7 December 2020, from https://energy.economictimes.indiatimes.com/news/renewable/india-becomes-second-largest-market-for-2. green-bonds-with-10-3-billion-transactions/73898149

Green bonds: Is it green finance or green-washing?. (2020). Retrieved 7 December 2020, from https://www.downtoearth.org.in/blog/energy/green-bonds-is-it-green-finance-or-green-washing--72755

3. 

Ghosh, S. (2020). State Bank of India raises $100 million in green bonds. Retrieved 7 December 2020, from https://www.livemint.com/companies/news/state-bank-of-india-raises-100-million-in-green-bonds-11585408209737.html