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State Bank of India, the country’s largest commercial bank, has dual listed its $650 million green bonds simultaneously on the India International Exchange (India INX) and Luxembourg Stock Exchange (LuxSE). This dual listing is in line with this year’s topic of World Investor Week, ‘Sustainable Finance’, as indicated by the regulatory body International Financial Services Centres Authority (IFSCA).
What Is a Green Bond?
A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.
These bonds are typically asset-linked and backed by the issuing entity’s balance sheet, so they usually carry the same credit rating as their issuers’ other debt obligations.
How Does a Green Bond Work?
Green bonds work just like any other corporate or government bond.
Green Bonds Vs Blue Bonds:
Blue bonds are sustainability bonds to finance projects that protect the ocean and related ecosystems.
Green Bonds Vs Climate Bonds:
“Green bonds” and “climate bonds” are sometimes used interchangeably, but some authorities use the latter term specifically for projects focusing on reducing carbon emissions or alleviating the effects of climate change.