Why aren’t Indian companies warming to green bonds?

Why aren’t Indian companies warming to green bonds?

Last month, after an absence of nine months, India entered the global green bond market. Two Indian companies — Greenko and Adani Green — stormed into the international market for green bonds to raise $950 million and $500 million, respectively.

(Green bonds are debt instruments in whose cases a third party has certified that the proceeds will be used only for clean projects.) The previous time an Indian company raised funds through a green bond issue was in September 2018, when the State Bank of India scooped up $650 million.

Feel like saying ‘wow? Hold on.

Greenko and Adani Green are exceptions. Indian companies have generally been cold to the green bond market, as the following statistics show.

In the last nearly seven years, green bonds worth half a trillion dollars have been issued. Of this, India’s contribution is $8.6 billion — around 1.7 per cent. Read more

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