A persistent premium over comparable government debt, alongside strong and steady demand from insurance companies has convinced market participants a larger supply of Indian sovereign green bonds can be absorbed in the second half of the fiscal year.
New Delhi sold 50 billion rupees ($524 million) of 30-year sovereign green bonds, at a so-called greenium of four basis points on Friday, leading to an average premium of four bps in the fiscal half-year, the highest since such sales began in the second half of fiscal 2023.
