National Bank for Agriculture and Rural Development plans to raise ₹30-50 billion by issuing its first green bond this month
India's National Bank for Agriculture and Rural Development (NABARD) plans to raise funds by issuing its first green bonds and could tap the market this month, three bankers with knowledge of the development told Reuters on Tuesday.
Bankers said the state-run company plans to raise between 30 billion rupees and 50 billion rupees ($363-$605 million) through the sale of green bonds maturing in five years to 10 years.
One of the bankers said the tenure will be finalized based on the prevailing market conditions.
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A company official said on condition of anonymity that NABARD is currently obtaining necessary certifications and approvals to comply with market regulators' guidelines on green loan issuance as they are not allowed to speak to the media.
The bankers also declined to be identified, discussing confidential information. NABARD did not immediately respond to an email from Reuters seeking comment.
NABARD's green bond issue comes amid a push to promote sustainable finance to fund green infrastructure projects in India.
The Securities and Exchange Board of India on Monday said issuers of green debt securities will have to appoint a third-party reviewer or certifier for post-earnings management starting April.
India sold its first tranche of sovereign green bonds in January, raising Rs 80 billion with a yield 5-6 basis points lower than comparable government securities.
India's Indore Municipal Corp also plans to raise Rs 2.44 billion through a maiden public issue of green bonds, which will open for subscription on Friday.
"We will also see other government companies with huge borrowing requirements tapping the market with green bonds in the coming days and efforts for the same are underway," said one of the bankers.
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