Network 18 Exclusive | Framework for Green Bonds likely by May end

In Budget 2022, the centre had expressed its plan to come up with its own sovereign green bonds to fund green projects. CNBC-TV18 has learnt from sources that both the government and the Reserve Bank of India are likely to be ready with the framework for issuing these green bonds by the end of May.

These instruments will be Rupee-denominated medium-to-long-term bonds, specifically made for the renewable energy sector. As part of the framework the government will look to define which are the sectors where green bonds can be raised, and in which projects the money can be invested. It is also possible, that the pricing of these green bonds could be lower than regular bond issues, in order to make them attractive for investors.

However, it is also learnt that the product may take some more time to develop, and the first tranche may be issued by around November-December. These green bonds were to be part of the Government's borrowing programme for the fiscal year FY23.