Sovereign green bonds now eligible under FAR

Mumbai: The Reserve Bank of India has made the 10-year sovereign green bonds eligible in the fully accessible route category, which will be opened fully for non-resident investors without any restrictions, apart from being available to domestic investors.

This inclusion of green bonds in the FAR category is expected to increase investor appetite for the paper, experts said. The RBI has issued a total of ₹36,000 crore in green bonds since 2022-23.

The government plans to issue ₹20,000 crore in green bonds in four tranches in the second half of 2025. The next auction for the 10-year green bond will be held in the last week of November. These green bonds are intended to help the government raise funds for public sector projects with sustainable goals.