A senior Indian government official said on Tuesday, September 5, that India may not issue green bonds during this fiscal year. For good reason, investors are not prepared to pay the premium that the government expects in relation to existing federal securities.

The government is not very enthusiastic about issuing green bonds due to the lack of a premium for such issues. According to the senior official, the Indian state “had expected a bonus of more than 20 basis points at the first auction”. In fact, the government raised 160 billion rupees ($1.93 billion) through five- and ten-year green bonds in January and February, its first-ever issuance of this type, with a yield five to six basis points lower than the corresponding government bonds at the

According to a senior treasury official from a primary trader, “the central bank sought advice on the issuance of green bonds, but it received unanimous comments that investors are not ready to absorb them at a premium because there is no additional incentive that differentiates them from other E securities ; state”.