Sagarmala Finance Corporation’s Maiden Blue Bond: Key Terms
Why in the news
Sagarmala Finance Corporation, the country’s first maritime lender, was set to raise money on 28 September through India’s maiden blue bond.
Key facts
- Blue bond: thematic debt for sustainable water and marine projects, like fisheries, shipping and ocean energy.
- First sovereign blue bond: Seychelles, 2018, with World Bank support.
- India’s first Sovereign Green Bonds: January 2023.
| Term | Meaning |
|---|---|
| Greenshoe option | Issuer retains oversubscription beyond base size, up to a limit |
| Greenium | Yield discount versus a conventional bond |
Regulation
- SEBI has a green debt securities framework and proposed norms against greenwashing.
Exam angle
- Issuer: Sagarmala Finance Corporation.
- Terms: greenshoe option, greenium.