India is counting on the blue-green bond to reduce finance costs

In the coming months, India is aiming to get much lower borrowing costs from its debut. People who are familiar with the matter said that officials are searching for a significant greenium in the premium investors pay for bonds that fund environmental projects. The government even prepared a structured framework to sell the debt in line with widely used principles. All this is done with the international capital market association as it is also liaising with the World Bank over the best practices. 

The low borrowing costs will help Asia’s third-largest economy finance infrastructure and also meet the clean energy goal. While managing all these record debt insurance plans. The first green bond sale will be before the end of the fiscal year in March. The discussions are underway with the ministers which will identify the projects such as automobile renewable energy and the Ganges River Restoration campaign. 

It is very obvious that India is a latecomer to the global market of green depth, but it has exploded in recent years. It will include the debut of Singapore, South Korea, and Hong Kong. It is very common to receive a low borrowing cost with it. It will be due to strong investment demand as it is often just a few basic points and a big greenium will be unusual. 

This is very true this year, as global market sentiment has taken a hit because of the surging inflation. The interest rate of the central bank The hike and the fallout from the word in Ukraine.

FAQ

  1. Which cities are included in the debut which will explode in the next few years?

Ans. Hong Kong, South Korea, Singapore.

  1. Who is the latecomer in the market for green debt?

Ans. India 

  1. Which is the first sale that will take place before the end of the physical year in March?

Ans. Green bond sale

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