Source: BS
Context: The second sovereign green bond auction of FY25 received a muted response, with the Reserve Bank of India (RBI) selling only ₹1,697 crore worth of 10-year green bonds at a cut-off rate of 6.90%, against a notified amount of ₹6,000 crore.
- Traders were unwilling to pay a premium (greenium) for the bonds, which signifies the additional value placed on green bonds for their environmental impact.
- The funds from these bonds are intended for public sector projects to reduce the carbon footprint.
