The Reserve Bank of India (RBI) cancelled the auction of 10-year green bonds for the first time , as traders refused to pay greenium.

Banking & Finance

In a first, the Reserve Bank of India (RBI) on Friday cancelled the auction of 10-year green bonds as traders refused to pay greenium. Greenium signifies the premium investors are willing to pay for green bonds because of their sustainability impact.Diverging from the pattern of issuing green bonds in the latter half, the government plans to issue green bonds worth Rs 12,000 crore in the first half of the current financial year. The green bonds were planned to be issued in two tranches of Rs 6,000 crore each for a period of 10 years.


      At the time of the auction, the benchmark bond yield was trading at 6.99 per cent.

      The yield on the benchmark 10-year government bond settled at 6.98 per cent on Friday, against 7 per cent on Thursday.

     

 

     


About RBI

CEO -Shaktikanta Das
HQ - Mumbai
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