Finance Department May Issue Green Bonds in FY23


Express press service

NEW DELHI: The Ministry of Finance is working on a framework to issue green bonds in the second half of the current fiscal year, a senior government source told TNIE. Part of the loan will be financed by these bonds whose preparatory work is underway, the sources said, declining to give details on the quantum.

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

“The Green Bond Framework will involve the details of the commitment to climate change and green economy. The type of initiatives taken for environmental changes, deployment of resources, etc. These are of a work in progress, after which it will be placed in the public domain so investors can go through the framework,” the source said.

“The framework will contain the details of the projects to be funded. Since we are not incurring any additional borrowing, we must borrow within the borrowing limits already decided in the budget. Thus, only those schemes which are already covered by the budget will be financed. Also, the need for funds for the execution of projects in the current fiscal year will be the deciding factor for the quantum of bonds to be issued,” the source added.

The source also said that the government will also look at bond prices. Green bonds should not cost more than normal bonds. Depending on the response to these bonds, the government may consider raising funds through them from foreign investors, the sources say.

Also, talking about the benefits of issuing green bonds, the source said that currently there are investors available for normal bonds, but with green bonds, the market will diversify. Market diversification will help to obtain competitive prices.

The worst of crude oil prices is behind us: FinMin official

After crude oil prices eased on Wednesday, a senior finance ministry official said the worst was behind when it came to rising oil prices. India imports more than 85% of its oil needs.

Oil prices traded at $98 a barrel on Friday but fell to $92.04 a barrel on Wednesday due to disappointing Chinese economic data. Retail sales in China jumped 2.7% in July from a year ago, while industrial production rose 3.8% year on year.

Indian financial markets were closed on Monday and Tuesday due to Independence Day and Parsi New Year respectively. Meanwhile, Foreign Minister S Jaishankar has defended India’s crude oil imports from Russia.

The United States and others may not like India buying Russian oil, but they accepted it and made it clear to them that the government had a “moral duty” to ensure that the people get the “best deal”, Jaishankar said.

NEW DELHI: The Ministry of Finance is working on a framework to issue green bonds in the second half of the current fiscal year, a senior government source told TNIE. Part of the loan will be financed by these bonds whose preparatory work is underway, the sources said, declining to give details on the quantum. Finance Minister Nirmala Sitharaman in her budget speech announced the government’s plan to issue green bonds in fiscal year 2022-23 (FY23) as part of its global market borrowings to mobilize resources for green infrastructure. “The Green Bond Framework will involve the details of the commitment to climate change and green economy. The type of initiatives taken for environmental changes, deployment of resources, etc. These are of a work in progress, after which it will be placed in the public domain so investors can go through the framework,” the source said. “The framework will contain details of the projects to be funded. , we have to borrow within the borrowing limits already decided in the budget, so only those schemes that are already in the budget will be financed, in addition, the need for funds for the execution of projects in the current financial year will be the deciding factor for the quantum of bonds to be issued,” the source added. The source also said that the government will also look at the price of the bonds. and normal bonds. Depending on the response to these bonds, the government may consider raising funds through them from foreign investors, the sources say. Also, talking about the benefits of issuing green bonds, the source said that currently there are investors available for normal bonds, but with green bonds, the market will diversify. Market diversification will help to obtain competitive prices. After crude oil prices fell on Wednesday, a senior finance ministry official said the worst was behind us on rising oil prices. India imports more than 85% of its oil needs. Oil prices traded at $98 a barrel on Friday but fell to $92.04 a barrel on Wednesday due to disappointing Chinese economic data. Retail sales in China jumped 2.7% in July from a year ago, while industrial production rose 3.8% on an annual basis. Indian financial markets were closed on Monday and Tuesday due to Independence Day and Parsi New Year respectively. Meanwhile, Foreign Minister S Jaishankar has defended India’s crude oil imports from Russia. The United States and others may not like India buying Russian oil, but they accepted it and made it clear to them that the government had a “moral duty” to ensure that the people get the “best deal”, Jaishankar said.

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