RBI to Auction First Tranche of Green Bonds Worth ₹80 Billion on January 25

Government of India (GOI) has announced the sale of two Sovereign Green Bonds for a notified amount of ₹8,000 crore through an auction by the Reserve Bank of India, Mumbai, on January 25.

There will be two auctions, each worth Rs40 billion. The first is for the ‘New GoI SGrB 2028’ (5-year term) and the second is for the ‘New GOI SGrB 2033’ (10 year tenure) using a yield-based, uniform price method.

The bonds’ proceeds will go to public sector projects that help lower the economy’s carbon emissions.

GoI will have the option to retain additional subscription up to ₹2,000 crore against each security mentioned above.

The securities will be sold through Reserve Bank of India Mumbai Office, Fort, Mumbai. The sale will be subject to the terms and conditions spelt out in the ‘Specific Notification’ mentioned above and the General Notification F.No.4(2)–W&M/2018, dated March 27, 2018.

The auction will be conducted using uniform price method for NEW GOI SGrB 2028 and NEW GOI SGrB 2033. Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 25, 2023 (Wednesday).

The non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. The result will be announced on the same day and payment by successful bidders will have to be made on January 27, 2023 (Friday).

Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ‘Primary Dealers’ from 09.00 a.m. up to 09:30 a.m. on January 25, 2023 (Wednesday) on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

On January 7th, SolarQuarter reported that The Reserve Bank of India (RBI) will auction 160 billion rupees ($1.93 billion) worth of sovereign green bonds in two tranches, in the government’s first-ever such debt sale to raise funds to finance clean projects.