State-owned NBFCs looking to tap into India's first sovereign green bonds

The finance ministry is yet to confirm their participation and draw broad contours of the bond issuance

Leading non-banking financial companies (NBFCs) are preparing to place bets on the country’s first sovereign green bond issuance, which was announced in the Union Budget 2022.

The power sector’s state-owned NBFCs -- Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) -- have approached the finance ministry, requesting a nod to anchor the maiden green bond issuance by the Indian government. Senior officials said the two NBFCs are comfortable with both domestic and international bond issuances, as they have experience in the same.

“PFC and REC have pitched for a role in the sovereign green bond issuance. The two NBFCs can act