According to bankers, the state-run company plans to raise between 30 billion and 50 billion rupees ($363-$605 million) through the sale of green bonds maturing in 5 to 10 years. According to one of the bankers, the tenure will be finalized based on current market conditions.
NABARD is currently obtaining the necessary certifications and approvals to comply with market regulators' guidelines on green debt issuance, according to a company official who spoke on the condition of anonymity.
The bankers also refused to be identified while discussing sensitive information. NABARD did not immediately respond to Reuters' request for comment. NABARD's green bond issue coincides with a push in India to increase sustainable finance in order to fund green infrastructure projects.
The Securities and Exchange Board of India announced on Monday that beginning in April, issuers of green debt securities will be required to appoint a third-party reviewer or certifier for the post-issue management of proceeds.
In January, India sold its first tranche of sovereign green bonds, raising 80 billion rupees at a yield 5-6 basis points lower than comparable government securities. Indore Municipal Corporation of India also plans to raise 2.44 billion rupees through the country's first-ever public issue of green bonds, which will open for subscription on February 10.
"In the coming days, we will also witness other state-run firms with significant borrowing needs leverage the market with green bonds, and attempts from the same are underway," one of the bankers said.
