RBI’s green bonds issuance oversubscribed on debut

The 5-year and 10-year green bonds were issued at a premium compared to the similar existing maturity sovereign regular bonds.

For the 10-year green bond – New GOI SGrB 2028 – the RBI received 170 competitive bids worth Rs 19,367 crore – nearly five times the notified amount of Rs 4,000 crore. Of this, the RBI accepted 57 bids worth Rs 3,948.646 crore.

For the 5-year green bond, 96 competitive bids worth Rs 13,525 crore were received, while the number of bids accepted were 32 worth Rs 3,993.124 crore, the RBI said.

The RBI issued the five-year green bond at a cut-off yield of 7.10 per cent and the 10-year green bond at 7.29 per cent.

The 10-year sovereign green bond was sold at a green premium, or greenium, of 6 basis points (bps) compared to the 10-year benchmark bond yield. The five-year green bond was sold at a premium of 5 bps when compared to the yield on the similar maturity sovereign bond.

The maiden sovereign green bond (SGrB) auction of Rs 8,000 crore held got oversubscribed owing to robust demand from various market participants, primarily banks.

The 5-year and 10-year green bonds were issued at a premium compared to the similar existing maturity sovereign regular bonds.

For the 10-year green bond – New GOI SGrB 2028 – the RBI received 170 competitive bids worth Rs 19,367 crore – nearly five times the notified amount of Rs 4,000 crore. Of this, the RBI accepted 57 bids worth Rs 3,948.646 crore.

For the 5-year green bond, 96 competitive bids worth Rs 13,525 crore were received, while the number of bids accepted were 32 worth Rs 3,993.124 crore, the RBI said.