Sunday, December 13, 2015

SEBI to set rules, offer sops for green bonds

What are green bonds?
Structured like ordinary bonds but will invest in only those companies and projects that help in reducing carbon footprint
Projects they invest in
Renewable energy, energy efficiency, sustainable waste management, sustainable land use, biodiversity conservation, clean transportation, sustainable water management and climate change adaptation
Special dispensations
No special dispensations allowed, apart from them being under RBI’s infrastructure bond category. Do not attract statutory requirements such as CRR & SLR
Funds raised by these bonds globally
$12.9-billion raised during the second quarter of 2015, bringing year-to-date totals to roughly $19.2 billion. Last year, fund-raising globally touched a record high of $37 billion

Indian issuances and fund-raising
YES Bank issued the first-ever green infra bonds in February this year. It raised Rs 315 crore through the issue of green infra bonds to IFC on a private placement basis. Exim Bank raised Rs 3,330 crore in March via green bond sale. IDBI plans to mop up Rs 2,331 crore via green bonds.

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