Green Bonds
What Are Green Bonds?
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Debt instruments issued to fund environmentally sustainable projects.
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Similar to sovereign or corporate bonds, but proceeds are earmarked for:
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Renewable energy
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Clean transportation
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Sustainable housing
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Waste and water management
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Investors receive interest payments on their investment.
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Helps fund the climate transition, especially in developing countries.
- Yes Bank issued India’s first green bond in 2015, raising ₹5 billion for renewable and clean energy projects.
- Ghaziabad Nagar Nigam issued India’s first certified Green Municipal Bond under the Swachh Bharat Mission-Urban, raising ₹150 crore for a sewage treatment plant.
- The Government of India launched its first sovereign green bonds in February 2023, raising ₹160 billion in two tranches to fund green infrastructure.