Govt. announces Issuance Calendar for Marketable Sovereign Green Bonds FY 2022-23

The Government of India will issue Sovereign Green Bonds (SGrBs) as part of its overall market borrowings, as stated in the Union Budget 2022–2023, in order to raise money for green infrastructure.

The funds raised will be used for government initiatives that lower the economy’s carbon footprint. Accordingly, on September 29, 2022, it was announced that SGrBs for a total of Rs 16,000 crore would be issued in the Half-yearly issuance calendar for marketable dated securities for the second half of the fiscal year 2022–23. Since then, on November 9, 2022, the Government of India has released the Sovereign Green Bond Framework.

The Government of India, in consultation with the Reserve Bank of India, has decided to notify the indicative calendar for issuance of SGrBs for the fiscal year 2022-23.

The issuance calendar is as under:

The features of the SGrB issuance will be as under:

Issuance Method: SGrBs will be issued through Uniform Price Auction.

Non-competitive bidding facility: Five per cent of the notified amount of sale will be reserved for retail investors as specified under the ‘Scheme for Non-competitive Bidding Facility in the Auctions of Government of India Dated Securities and Treasury Bills’.

Eligibility for Repurchase Transactions (Repo): SGrBs will be eligible for Repurchase Transactions (Repo) as per the terms and conditions mentioned in Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 as amended from time to time.

Eligibility for Statutory Liquidity Ratio (SLR): SGrBs will be reckoned as eligible investment for SLR purpose.

When-issued Trading: SGrBs will be eligible for “When Issued” trading in accordance with the guidelines on ‘Transactions in the When Issued market in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2018-19/25 dated July 24, 2018, as amended from time to time.

Tradability: SGrBs will be eligible for trading in the secondary market.

Investment by Non-residents: SGrBs will be designated as specified securities under the ‘Fully Accessible Route’ for investment in Government Securities by non-residents.

The calendar is subject to modification if necessary, including because of intervening holidays, for example. Press releases must be used to announce such changes.

The terms and conditions outlined in the General Notification No. F.4(2)-W&M/2018 issued by the Government of India on March 27, 2018, as amended from time to time, will apply to the auction of SGrBs.