India looks to raise another 80 billion rupees from second tranche of green bonds

[NEW DELHI] The Indian government announced on Thursday (Feb 9) that it hopes to raise a minimum of 80 billion rupees (S$1.28 billion) through the sale of a second tranche of sovereign green bonds.

The Reserve Bank of India plans to sell 40 billion rupees’ worth of 7.1 per cent 2028 sovereign green bonds, and the same amount of 7.29 per cent 2033 sovereign green bonds. The quantum and tenor are similar to those in the debut auction last month, with the proceeds going towards funding green investments.

Observers say they are waiting to see how this second tranche will perform, given that the participation from foreign investors was low for the debut auction despite there being no restriction on the investment amount. There was a steady demand, however, from domestic institutional investors and retail investors.