CURRENT AFFAIRS

Detailed explanation-1: -Notes: The first tranche of Sovereign Green Bonds (SGrBs) issued by the Reserve Bank of India (RBI) worth Rs 8, 000 crore was subscribed fully. SGrBs will be issued through uniform price auction and 5 per cent of the notified amount of sale will be reserved for retail investors.

Detailed explanation-2: -The Minister stated that these bonds will be issued according to Framework for Sovereign Green Bonds. The framework has been released on 9th Nov, 2022 by the Government of India. The resources mobilised by issuing Sovereign Green Bonds is part of the Government’s overall market borrowings in the year 2022-23.

Detailed explanation-3: -Green bonds, popularly known as climate bonds, are fixed interest-bearing financial instruments issued by any sovereign entity / inter-governmental organisation /corporation. The Reserve Bank of India (RBI) recently auctioned its maiden sovereign green bonds worth ₹8, 000 crore.

Detailed explanation-4: -The Government of India joined the Sovereign Green Bonds Club on 25 January 2023 when the Ministry of Finance priced an INR 80 billion (USD 1 billion two tranche deal split equally between five and ten year tenors.