Ministry of Finance – The New Indian Express

0

Express press service

NEW DELHI: The government will raise Rs 20,000 crore through green bonds in the second half of this fiscal year, as part of its borrowing of Rs 5.86 lakh crore. The Center is working on the contours of the green bond framework.

“We will issue green bonds for a small amount of Rs 20,000 crore this financial year. We are in the process of finalizing the framework for these bonds,” a senior finance ministry official told TNIE. He further added that the timing of issuance of these bonds has not yet been decided.

According to the sources, the green bond framework will contain the details of the projects to be funded.

“As we are not doing any additional borrowing, we have to borrow within the borrowing limits set out in the budget. This way, only those schemes that are already in the budget will be funded,” the source added.

“It is not necessary that the issue of these bonds be announced, as well as the loan for the second half. There are certain formalities to be complied with before initiating these bonds,” the official said.

Finance Minister Nirmala Sitharaman, in her budget speech, announced the Centre’s plan to issue green bonds in fiscal year 2022-23 (FY23) as part of its global market borrowing for mobilize resources for green infrastructure.

Another source said the government would also look at bond prices. Green bonds should not cost more than normal bonds. Depending on the response, the government may consider raising funds through them from foreign investors, he said.

Meanwhile, government sources said that with the issuance of green bonds, the market will diversify as there are currently only investors for normal bonds. Market diversification will help to obtain competitive prices.

NEW DELHI: The government will raise Rs 20,000 crore through green bonds in the second half of this fiscal year, as part of its borrowing of Rs 5.86 lakh crore. The Center is working on the contours of the green bond framework. “We will issue green bonds for a small amount of Rs 20,000 crore this financial year. We are in the process of finalizing the framework for these bonds,” a senior finance ministry official told TNIE. He further added that the timing of issuance of these bonds has not yet been decided. According to the sources, the green bond framework will contain the details of the projects to be funded. “As we are not doing any additional borrowing, we have to borrow within the borrowing limits set out in the budget. This way, only those schemes that are already on the budget will be funded,” the source added. “It is not necessary that the issuance of these bonds is announced, as well as the borrowing for the second semester. There are certain formalities to be observed before launching these bonds,” said the official Finance Minister Nirmala Sitharaman, in her speech on the budget, announced the Center’s plan to issue green bonds in fiscal year 2022-23 (FY23) as part of its overall market borrowing to mobilize resources for green infrastructure. said the government would also look at bond pricing Green bonds should not be more expensive than normal bonds Depending on the response, the government may consider raising funds through them r intermediary with foreign investors, he said. Meanwhile, government sources said that with the issuance of green bonds, the market will diversify as there are currently only investors for normal bonds. Market diversification will help to obtain competitive prices.

Share.

Comments are closed.