SBI to raise $500 m in maiden green bond sale

Mumbai: The country’s largest lender State Bank is in the international bond market to raise nearly USD 500 million in green bonds, making it the maiden issuance for the lender.
The tenor of the bonds is expected to be five years and the notes are to be issued by the bank’s London branch. With this issue SBI will become compliant with the global standards as prescribed by the Climate Bonds Initiative, a global not-for-profit investor-focused organisation. According to Bank of America-Merrill Lynch, the domestic green bond market has a $ 125-billion opportunity by 2025. It expects around $32 billion of such bonds being sold over the next five years. Over the past two years, domestic companies have raised $6 billion in green bond sales, led by Exim Bank, Yes Bank, Axis Bank and green power palyer Renew Power. (PTI)