The Reserve Bank of India (RBI) has issued the second Rs 80 billion tranche of sovereign green bonds on February 9, 2023.
The tranche included Rs 40 billion each of 5-year and 10-year notes. The 10-year bond was sold at a cut-off price of 7.2965 per cent, while the 5-year bond was sold at a cut-off price of 7.2304 per cent. The proceeds will be deployed in public sector projects that will help in reducing the carbon intensity of the economy. Notably, the first Rs 80 billion tranche of green bonds was issued on January 25, 2023, wherein the 10-year bond was sold at a cut-off price of 7.29 per cent, while the 5-year bond was sold at a cut-off price of 7.10 per cent. Following this auction, the RBI has successfully completed the Rs 160 billion worth of green bond issuances that were earmarked for the current financial year. The second tranche of the government’s sovereign green bonds saw its premium – or ‘greenium’ – narrow slightly compared to regular government bonds.