India Central Bank Sets Underwriting Commission For Sovereign Green Bonds

The Reserve Bank of India (RBI) has announced underwriting commission rates for upcoming sovereign green bonds. These bonds are part of India’s broader push toward sustainable finance and climate-focused investment instruments.

Commission Details

The RBI set differentiated rates based on bond maturity:

• 0.0068 rupee per 100 rupees for 2056 bonds
• 0.0064 rupee per 100 rupees for 2055 bonds
• 0.0074 rupee per 100 rupees for 2033 bonds
• 0.0120 rupee per 100 rupees for 2029 bonds

These rates reflect the varying risk and demand profiles across maturities, ensuring efficient participation from underwriters.

Market Impact

Analysts view this as a strategic step to deepen India’s green bond market. By setting competitive commissions, the RBI aims to encourage broader investor interest while maintaining fiscal prudence. The initiative also aligns with India’s climate commitments and sustainable development goals.

Key Highlights

• RBI announces underwriting commissions for sovereign green bonds
• Rates range from 0.0064 to 0.0120 rupees per 100 rupees
• Longer maturities carry lower commission rates
• Supports India’s sustainable finance and climate agenda
• Encourages investor participation in green bonds

Sources: Reuters, Economic Times, Business Standard