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First ever sovereign green bond auction lapped up at lower-than-mkt yields

PSU banks, insurers show firm demand at sale, traders say; FPIs likely bought 700 crore after auction

Green bonds
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The cutoff yield for the five-year paper was set at 7.10 per cent

Bhaskar Dutta Mumbai
The government’s first ever sale of green bonds was greeted with strong demand by investors, with the securities being issued at lower yields than those prevailing on regular sovereign bonds of comparable maturity.

The Reserve Bank of India on Wednesday conducted the government’s maiden sale of green bonds, with a total of Rs 8,000 crore worth of two securities – a five-year bond and a ten-year bond - being sold.

As had been anticipated by traders ahead of the auction, the sale saw robust demand from state-owned banks. Insurance companies were also said to have participated strongly at the debt

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First Published: Jan 25 2023 | 6:42 PM IST

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