₹5,000 Cr Green Bonds in RBI’s ₹30,000 Cr G-Sec Auction to Fund Eco Projects

In a major boost to sustainable financing, the Reserve Bank of India (RBI) will re-issue ₹5,000 crore worth of Sovereign Green Bonds (SGrBs) as part of a ₹30,000 crore government securities (G-Secs) auction scheduled for June 13, 2025. These bonds, aimed at funding environmentally sustainable infrastructure projects, form a part of India’s ongoing strategy to promote green economic growth and attract climate-conscious investors.

Why in News?

The RBI announced the re-issuance of green bonds totaling ₹5,000 crore maturing in 2054. These will be part of a ₹30,000 crore G-Sec auction on June 13, 2025, which includes two other dated securities. Green bonds will finance eco-friendly sectors like renewable energy, clean transport, and energy efficiency.

Auction Breakdown

• Total Notified Amount: ₹30,000 crore

Comprises

• ₹5,000 crore of 6.98% Sovereign Green Bonds, maturing in 2054
• ₹11,000 crore of 6.79% G-Secs, maturing in 2031
• ₹14,000 crore of 7.09% G-Secs, maturing in 2074

What Are Sovereign Green Bonds (SGrBs)?

• Government-issued debt instruments.
• Specifically meant to finance sustainable and environmentally beneficial projects.

Proceeds go to,

• Renewable energy
• Sustainable water management
• Clean transportation
• Energy efficiency
• Encourage ESG (Environmental, Social, Governance) investment participation.

Auction Method & Key Dates

• Auction Date: June 13, 2025
• Auction Platform: RBI’s e-Kuber
• Method: Multiple price-based auction

Additional Details

• Government may accept ₹2,000 crore extra under each security.
• Bonds will be eligible for “When Issued” (WI) trading from June 10–13, allowing early trading before issuance.

Significance for India

Reinforces India’s commitment to,

• Green infrastructure
• Low-carbon economy goals
• Helps achieve targets under:
• Nationally Determined Contributions (NDCs)
• Paris Agreement on Climate Change
• Strengthens India’s position as a responsible sovereign borrower with a green agenda.