Green bond yields rising sharply in secondary market: All you need to know

Yields on green bonds issued by Indian firms have increased in the secondary market, sometimes more than the rise in other dated security yields. Green bonds have a huge demand, but at a time of global uncertainties, investors are asking for an ‘uncertainty premium’ for lower rated and niche players.

Not surprisingly, there has been no issuance of green bonds so far this year, even as State Bank of India (SBI) is scouting for investors for its maiden green bond issue.