State Bank of India has listed green bonds of $100 million (about Rs 750 crore) on BSE’s India International Exchange (India INX). The bank has listed green bonds under its USD 10 billion global medium-term note programme on India INX’s Global Securities Market Green Platform (GSM).
SBI has adopted the green bond framework with the objective of creating a positive impact on the environment & this transaction is considered as part of the sustainability journey. The funds raised by green bonds are used to finance green projects that do not discharge toxic elements.
What is Green Bond?
Green Bond is a type of fixed income instrument that is specifically reserved for raising money to climate & environmental projects so as to encourage sustainability. It is comparatively an attractive investment than a comparable taxable bond, as it provides tax incentives such as tax exemption and tax credits.
Important takeaways for all competitive exams:
- Headquarters of SBI: Mumbai, Maharashtra.
- Chairman of SBI: Rajnish Kumar.