Government Plans to Raise Rs 20,000 Crores Through Sovereign Green Bonds

The central government announced plans to collect Rs 20,000 crores via Sovereign Green Bonds in the second half of FY25. The bonds will be divided into four tranches, each aimed at financing environmentally sustainable projects. The Finance Ministry will conduct 21 weekly auctions to complete the borrowing.

In an ambitious move to boost India's green initiatives, the central government has announced the collection of Rs 20,000 crores through 'Sovereign Green Bonds' for the second half of the financial year 2025. According to a release from the Finance Ministry, the funds will be raised via 21 weekly auctions.

The ministry detailed that the green bonds will be issued in four tranches of Rs 5,000 crore each. The first 10-year bond will be available from November 25 to 29, followed by a 30-year bond from December 9 to 13. Another 10-year tranche will be released from January 27 to 31, with the final 30-year bond scheduled for February 17 to 21.

Sovereign Green Bonds are designed to finance projects that facilitate India's transition to a low-carbon economy. The government also retains the 'green shoe' option to accept an additional subscription of up to Rs 2,000 crores if demand exceeds supply.

For the third quarter of FY25, the central government plans to borrow Rs 19,000 crores through Treasury Bills. Additionally, the Reserve Bank of India has set a Ways and Means Advances limit of Rs 50,000 crores to manage temporary mismatches in government accounts.

The borrowing program for the second half of 2024-25 includes a planned raise of Rs 6.61 lakh crores, constituting 47.2% of the gross market borrowing for the year. This initiative underscores the government's commitment to funding sustainable and green projects.

(With inputs from agencies.)