NEW DELHI: The Ministry of Finance on Friday said that central government plans to raise Rs 20,000 crore by introducing “Government Green Bondsin the second half (October-March) of the 2025 financial year.
In a press release, the ministry informed the government’s plans to complete the loan for the second half of FY25 through 21 weekly auctions.
According to the ministry, the green bonds will be issued in four tranches of Rs 5,000 crore each, with the first 10-year sovereign green bond being issued from November 25 to 29. The second issue, a 30-year Rs 5,000 crore bond, will come between December 9 and 13, the third issue of a 10-year bond will be from January 27 to 31, and the final tranche will come between February 17 to 21 for a 30-year green bond.
Government green bonds are a form of government debt designed to finance projects that support India’s transition to a low carbon economy. These bonds will be used to finance environmentally sustainable initiatives, including environmental projects in the public sector.
The government has also reserved the right to exercise the green shoe option, which allows it to accept additional subscriptions of up to Rs 2,000 crore for each security named in the auction notifications. This flexibility will allow the government to respond to increased demand from investors.
The central government’s weekly borrowing in the third quarter of FY25 through treasury bills is expected to be Rs 19,000 crore over 13 weeks.
In addition, Reserve Bank of India (RBI), addressing the temporary imbalances in government accounts and ensuring sufficient liquidity to meet short-term funding needs, also set the Ways and Means Advances (WMA) limit for H2 FY25 at Rs 50,000 crore.
In the release, the Finance Ministry said the central government in consultation with the Reserve Bank of India has finalized its borrowing program for the second half of 2024-25, with the budget being gross market loans from Rs 14.01 lakh crore in FY25.
Of this, Rs 6.61 lakh crore, or 47.2 per cent, is planned to be raised in the second half (October-March) of the fiscal year through issue of dated securities and bonds.
Central government to issue Rs 20,000 crore ‘sovereign green bonds’ in four tranches in FY25 – Times of India
