No limits on foreign investments in sovereign green bonds: RBI

Sovereign green bonds issued by the Union government would not have any restrictions on foreign investment, the Reserve Bank of India (RBI) said on Monday. 

Such securities would be counted as specified securities under the fully-accessible route, the central bank said in a notification. 

The RBI had earlier this month announced an auction of Rs 16,000 crore of sovereign green bonds in two tranches, half of which are set to be issued on Wednesday. 

The proceeds will be used to fund solar, wind and small hydropower projects, including other “public sector projects which help in reducing the carbon intensity of the economy”, the RBI said. 

The fully-accessible route includes securities which do not have any restrictions on holdings by foreign investors. 

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