- Business Today
India raises Rs 8,000 cr from maiden green bond sale
India's first sovereign green bond issue was mostly subscribed by local banks and insurance companies, with limited interest from foreign investors, market participants said.
New Delhi raised Rs 8,000 crore via green bonds on Wednesday. The Reserve Bank of India sold Rs 4,000 crore of five-year bonds at a coupon rate of 7.10%, five basis points below the sovereign yield of similar tenure. Another Rs 4,000 crore of 10-year bonds were sold at 7.29%, six basis points below comparable government securities.
"Bulk of the issue was picked up by local banks and insurance companies, with some participation from foreign banks as well," said a senior fixed income trader with a private bank. "It seems, demand from foreign investors was not as large as envisaged.