A green bond is a bond whose proceeds are used to financing
environment-friendly projects. It is investor friendly bond where investor gets
the tax benefits. Due to huge financing requirement for climate change action
in India by 2030 SEBI proposed new norms for issuance and listing of green
bonds.
There are currently four types of green bond, these are:
1.
Green use of proceeds bond.
2.
Green use of proceeds revenue bond.
3.
Green project bond.
4.
Green securitized bond.
The following entities have green bonds in India:-
1.
Yes Bank
2.
CLP India
3.
Exim Bank of India
4.
IDBI Bank
Difference between Green Bond and Regular Bond:
The key difference between Green Bond & Regular bond is
that proceed from Green Bond will be used only for green project whereas there
is no such criteria regarding the Regular bond.
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