India's National Bank for Agriculture and Rural Development (NABARD) plans to raise funds by issuing its first-ever green bonds and could tap the market this month, three bankers aware of the development told Reuters on Tuesday.
The state-run company is planning to raise between 30 billion rupees and 50 billion rupees ($363-$605 million) through the sale of green bonds maturing in five years to 10 years, the bankers said.
The tenure will be finalised based on prevailing market conditions, said one of the bankers.
Currently, NABARD is getting necessary certifications and approvals to comply with the market regulators' guidelines on green debt issuance, a company official said on a condition of anonymity as they are not allowed to speak to media.
The bankers also declined to be identified discussing confidential information. NABARD did not immediately reply to an email from Reuters seeking comment.
NABARD's green bond issue comes amid a push for boosting sustainable finance in India to fund green infrastructure projects.
On Monday, the Securities and Exchange Board of India said that issuers of green debt securities will have to appoint a third-party reviewer or certifier for the post-issue management of proceeds starting in April.
India sold its first tranche of sovereign green bonds in January, raising 80 billion rupees, with the yield 5-6 basis points below that of comparable government securities.
India's Indore Municipal Corp also plans to raise 2.44 billion rupees through the first-ever public issue of green bonds, which will open for subscription on Friday.
"We will also see other state-run companies with large borrowing requirements to tap the market with green bonds in the coming days and the efforts from the same are underway," said one of the bankers. ($1 = 82.6900 Indian rupees)
(Reporting by Bhakti Tambe; Editing by Savio D'Souza)
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