- The Central Government recently released the framework for the proposed sovereign Green Bond.
- The Green Bonds Framework was released by the Indian Government on November 9, 2022.
- As per this framework, the payments of principal and interest on the Green Bonds will not rely on the eligible projects’ performance.
- Therefore, the investors will not be adversely affected by any project-related risks.
- The eligible expenditure are limited to government expenditures that occurred within 12 months before the issuance of the bond.
- All of the proceedings for the bond will be allocated to projects within 24 months after the issuance.
- Green bonds are financial instruments that generate proceeds for the investments in environmentally-suitable and climate friendly projects. These instruments have lower capital cost than regular bonds.
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