The Reserve Bank of India (RBI) has announced the re-issue of sovereign green bonds (SGrBs) as part of the upcoming government securities (G-Secs) auction scheduled for June 13, 2025.

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As per a notification by RBI on Monday, the total notified amount for sale is Rs 30,000 crore, which includes Rs 5,000 crore of 6.98 per cent SGrBs maturing in 2054.

RBI said "Government of India (GoI) has announced the sale (re-issue) of three dated securities for a notified amount of Rs 30,000".

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Sovereign green bonds are government-issued bonds specifically aimed at financing environmentally sustainable projects.

The proceeds from these bonds are allocated to sectors such as renewable energy, clean transportation, sustainable water management, and energy efficiency. These bonds serve both to promote climate-conscious growth and to attract environmentally focused investors.

In addition to the sovereign green bonds, two other dated securities will also be re-issued: Rs 11,000 crore of 6.79 per cent government securities maturing in 2031, and Rs 14,000 crore of 7.09 per cent securities maturing in 2074.

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The auction will be conducted using a multiple price method via RBI's e-Kuber platform. Non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m., and competitive bids between 10:30 a.m. and 11:30 a.m. on the auction day.

The results will be announced on the same day, and successful bidders will need to make payments on June 16, 2025.

The government also retains the option to accept up to Rs 2,000 crore of additional subscriptions against each of the securities. The stocks will be eligible for "When Issued" trading from June 10 to June 13, 2025, allowing investors to trade the securities even before they are formally issued.

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Primary Dealers may submit underwriting bids for the Additional Competitive Underwriting (ACU) portion between 9:00 a.m. and 9:30 a.m. on the same day.

The re-issuance of sovereign green bonds highlights that the government's continued commitment to fund green infrastructure and sustainability initiatives, aligning with India's broader environmental and economic goals.

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