Sovereign green bond trading on IFSC to begin in second half of this fiscal year: RBI Governor

Reserve Bank Governor Shaktikanta Das said on Saturday trade of Sovereign green bonds You can start at the International Financial Services Centre at Gujarat During the second half of the current fiscal“We are in talks with the Federal Trade Commission (IFSC)It will be launched very soon. I think in the second half (of the current one) Financial year), will be possible,” Das said.

In April, the Reserve Bank of India (Reserve Bank of India) had announced that it would issue a framework to allow trading in sovereign debt Green bonds in GIFT City.

He government It has been raising funds through green bonds since 2022-23 and has raised a total of Rs 36,000 crore in the last two years.

So far, in the current financial year, the government has raised only Rs 1,697 crore of the stipulated Rs 12,000 crore to be raised in the first half ending September through green bonds as it did not find favourable offers.

Asked about the lukewarm response from investors to that bond issue, Das said, “As the debt manager of the government, we are keeping a close eye on what exactly is happening and if anything needs to be done, we will interact with the government and take it up.” He further said that one of the important announcements in this year’s budget is the development of a climate taxonomy. “I think it will have a significant long-term impact on mobilizing funds for the green sector, not only through green bonds but also in overall green sector financing,” he said. “We will develop a taxonomy for climate finance “To increase the availability of capital for climate change adaptation and mitigation, the country’s achievement of climate commitments and green transition will be supported,” Finance Minister Nirmala Sitharaman said in her Budget speech for 2024-25.

Earlier in the day, Sitharaman addressed the board members at the 609th post-Budget RBI Central Board Meeting held here.