The Reserve Bank of India (RBI) has issued a calendar to mop up ₹200 billion (~$2.36 billion) in four equal tranches of sovereign green bonds in the second half of fiscal year 2024-25.

The first tranche of ₹50 billion (~$592 million) will be open for subscription between November 25 to 29, 2024. It will have a 10-year tenor. The second tranche will be open for subscription between December 9 and 13 and will have a 30-year tenor.

The third tranche will have a 10-year tenor and will be open for subscription between January 27 and 31, 2025, and the fourth tranche will have a tenor of 30 years from February 17 to 21, 2025.

The RBI may exercise the greenshoe option of up to ₹20 billion ($~236.67 million) against each of the four green bond auctions.

Non-resident Indians (NRI) can now invest in sovereign green bonds of 10-year tenor through the International Financial Services Centre (IFSC) in GIFT City, Gandhinagar, in Gujarat, the RBI said in a notification.

Last February, the government completed the sale of ₹160 billion (~$1.95 billion) in its inaugural sovereign green bonds issue.

In March 2023, NSE Indices, a subsidiary of the National Stock Exchange, launched India’s first sovereign green bond indices to track the performance of government-issued securities. The Nifty India Sovereign Green Bond Jan 2028 Index and Nifty India Sovereign Green Bond Jan 2033 Index will have a maturity date of January 31, 2028, and January 31, 2033, respectively.

The government proposes to deploy the proceeds from the green bonds in public sector projects, which will help reduce the economy’s carbon intensity. It listed nine sectors, including climate change, sustainable water and waste management, clean transportation, renewable energy, and pollution control, that would benefit from the funds raised through green bonds.

Market regulator Securities Exchange Board of India issued a protocol for listing green debt securities after reviewing the regulatory framework in response to corporate interest in floating green bonds. The regulations also apply to ‘yellow bonds,’  which comprise funds raised for solar energy generation and the upstream and downstream industries associated with it.