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Decoded: What are green bonds and how much will be the govt issue?

Green bonds are debt instruments the proceeds of which are utilised to finance projects that are beneficial to the environment

Green bonds
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Globally, green bonds are issued at a premium to other kinds of debt, as the instruments, by design, are meant to facilitate access to cheaper capital for environment-friendly projects

Bhaskar Dutta Mumbai
For the first time ever, the government will this year embark on the issuance of green bonds, Finance Minister Nirmala Sitharaman said while presenting the Union Budget in February. The move comes amid an increased global push towards setting aside funds, both private and public, for environment-conscious development. However, the success of the government’s plan to introduce bonds specifically aimed at raising funds towards this end is contingent on the creation of a conducive investment climate. We decode the proposal to launch green bonds.

What are green bonds?

Green bonds are debt instruments the proceeds of which are utilised to

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First Published: Sep 27 2022 | 5:05 PM IST

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