Green Bonds

2 min read

News:State Bank of India(SBI) has raised $100 million in green bonds through private placement.

Facts:

  • Green Bonds:They are fixed-income financial instruments issued for funding of specific projects which have positive environmental and climate benefits.
  • Categories: SEBI has allocated eight categories as green projects: a) renewable energy b) clean transportation c) sustainable water management d) climate change e) energy efficiency f) sustainable waste management and g) land use and h) biodiversity conservation. 

Additional Facts:

  • Bonds:It is a debt instrument in which an investor loans money to an entity (typically corporate or government) which borrows the funds for a defined period of time at a variable or fixed interest rate.
  • Private Placement:It is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market.
  • Climate Bonds Initiative(CBI):It is an investor-focused not-for-profit initiative launched solely to mobilize a $100 trillion bond market for climate change solutions.