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India's maiden sovereign green bonds yields set 6 bps below current benchmark bond

Currently, the yield on 10-year benchmark 7.26 percent 2032 bonds were at 7.3502 percent, and 7.38 percent 2027 bonds were at 7.1572 percent.

January 25, 2023 / 05:38 PM IST
The thinking behind issuing a green bond is to seek out international investors. (Representative Image)

The thinking behind issuing a green bond is to seek out international investors. (Representative Image)

The Reserve Bank of India (RBI) on January 25 raised Rs 8,000 crore through maiden sovereign green bonds maturing in 10-year and 5-year, and sets yields over six basis points (bps) below the current normal sovereign benchmark bonds.

It set 7.29 per cent cut-off yield on the country’s maiden 10-year sovereign green bonds (SGrB) or NEW GOI SGrB 2033 and  7.10 per cent cut-off yield on the NEW GOI SGrB 2028, release said.

As per the full results, the issue received competitive bids worth Rs 19,367 crore on 10-year SGrB, of which RBI accepted bids worth Rs 3,948.646 crore. Similarly, they received non-competitive bids worth Rs 51.354 crore and it accepted full bids.

On the 5-year SGrB, they accepted competitive bids worth Rs 3,993.124 crore and Rs 6.876 crore worth Non-Competitive Bids.