India auctioned Rs.200 billion worth sovereign green bonds in FY24
03 Jun 2024
2 Min Read
CW Team
The government auctioned sovereign green bonds worth Rs.200 billion in FY24 as compared to Rs.160 billion in FY23 to mobilise resources for green infrastructure projects, particularly for expanding renewable energy capacity.
Besides, foreign direct investment (FDI) flows towards non-conventional energy surpassed $2 billion for the second consecutive year, the latest edition of the CEEW Centre for Energy Finance (CEEW-CEF) Market Handbook revealed.
It said that the Reserve Bank of India concluded four sovereign green bonds auctions of Rs.200 billion vs Rs.160 billion in FY23, whose proceeds may be used to finance or refinance eligible green projects, it pointed out, adding that all the sovereign green bonds (SGrB) in FY24 were oversubscribed.
The SGrB offerings were 5-year (New SGrB 2028), 10-year (New SGrB 2033) and 30-year (New SGrB 2054 and 7.37 percent SGrB 2054), the CEEW-CEF report said. Apart from the 7.37 percent SGrB 2054, all other offerings鈥� coupon rates were yield-based which after auctions came out to be 7.25 per cent, 7.24 per cent and 7.37 per cent, respectively, it added. In FY24, the repo rate remained pegged at 6.5.
The SBI MCLR (1-year) rate was increased by 50 basis points twice in FY24, from 8.5 per cent in April 2024 to 8.65 per cent in March 2024, it pointed out.
The proceeds from these bonds are deployed in public sector projects, focusing on sectors such as clean transportation, renewable energy and sustainable water management. This will help reduce the economy鈥檚 carbon intensity in line with the commitments made under the nationally determined contributions (NDCs).
The government auctioned sovereign green bonds worth Rs.200 billion in FY24 as compared to Rs.160 billion in FY23 to mobilise resources for green infrastructure projects, particularly for expanding renewable energy capacity.Besides, foreign direct investment (FDI) flows towards non-conventional energy surpassed $2 billion for the second consecutive year, the latest edition of the CEEW Centre for Energy Finance (CEEW-CEF) Market Handbook revealed.It said that the Reserve Bank of India concluded four sovereign green bonds auctions of Rs.200 billion vs Rs.160 billion in FY23, whose proceeds may be used to finance or refinance eligible green projects, it pointed out, adding that all the sovereign green bonds (SGrB) in FY24 were oversubscribed.The SGrB offerings were 5-year (New SGrB 2028), 10-year (New SGrB 2033) and 30-year (New SGrB 2054 and 7.37 percent SGrB 2054), the CEEW-CEF report said. Apart from the 7.37 percent SGrB 2054, all other offerings鈥� coupon rates were yield-based which after auctions came out to be 7.25 per cent, 7.24 per cent and 7.37 per cent, respectively, it added. In FY24, the repo rate remained pegged at 6.5.The SBI MCLR (1-year) rate was increased by 50 basis points twice in FY24, from 8.5 per cent in April 2024 to 8.65 per cent in March 2024, it pointed out.The proceeds from these bonds are deployed in public sector projects, focusing on sectors such as clean transportation, renewable energy and sustainable water management. This will help reduce the economy鈥檚 carbon intensity in line with the commitments made under the nationally determined contributions (NDCs).
Next Story
Reliance, Diehl Advance Pact for Precision-Guided Munitions
Diehl Defence CEO Helmut Rauch and Reliance Group鈥檚 Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence鈥檚 long-term commitment to the Indian market and its support for the Indian Government鈥檚 Make in India initiative. The partnership鈥檚 current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the 鈥淰ulc..
Next Story
Modis Navnirman to Migrate to Main Board, Merge Subsidiary
Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company鈥檚 growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..
Next Story
Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025
The Bharat InvITs Association鈥檚 industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States鈥� share of global activity below 15 per cent. Meanwhile, in..
