Greenium
- On 22nd July, 2024, Chief Economic Advisor said that private investors need to "walk the talk" on prioritising sustainable investments citing the low "greenium" from them on India's sovereign green bond offerings.
- Greenium refers to the premium that the issuer receives on green bond issuances wherein investors are willing to accept lower yields on such debt instruments due to the sustainable nature of the projects financed by their proceeds.
- It is the amount by which the yield on the green bond is lower, compared with the conventional bond.
- The logic behind a greenium is that because of the appeal of sustainability, green bonds ....
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