The RBI is conducting auctions for the country's first green bonds. Here's all you need to know.
Green bonds are a fixed-income instrument designed to support specific climate-related or environmental projects. Such funds attract ESG-inclined investors.
The issue will be open to retail investors under RBI's Retail Direct facility. The minimum bid size is Rs 10,000 and multiples.
There are no tax benefits in buying these bonds.
Yields on the green bonds are expected to be slightly lower than that of government securities. Experts expect it to be 5-10 basis points lower.
The RBI is issuing two bonds with tenures of 5 and 10 years.