As market yields rise, premium of sovereign green bond slightly narrows

The cut-off yield for the five-year green bond was set at 7.23% while that for the 10-year green bond was set at 7.30%

The second sale of the government’s sovereign green bonds saw its premium – or ‘greenium’ – narrow slightly compared to regular government bonds, as market sentiment weakened after the Reserve Bank of India’s (RBI) policy statement.

The Centre on Thursday sold Rs 8,000 crore worth of two green bonds – Rs 4,000 crore of a five-year green bond and Rs 4,000 crore of a 10-year green bond. Following Thursday’s auction, the Centre has successfully completed the Rs 16,000 crore worth of green bond issuances that were earmarked for the current financial year.

The cut-off yield for the five-year green bond