A green bond is a bond whose money must be used for environmental projects such as renewable energy, clean transport or water management. In India, listed green bonds follow SEBI's framework for green debt securities.
The issuer commits to using the proceeds for eligible projects, tracks how the money is spent, and reports on it. SEBI's rules also require disclosures about the projects and warn against "greenwashing". The Government of India issues sovereign green bonds too.
For the investor, a green bond carries the same credit risk as the issuer's other bonds of the same rank. The label tells you how the money is used, not how safe it is.
Related
Related terms: NCD (non-convertible debenture) · Credit rating · Municipal bond
Before investing, look up the issuer: all its outstanding bonds, rating history and disclosure documents.
This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.
