With its debut sale this month, India is testing the waters of a sluggish global green bond market, aiming to raise $2 billion for sustainable projects. Indian officials have made it clear that they want a significant `greenium' for the sale in order to reduce the country's borrowing costs,

which will necessitate attracting enough foreign investors to the rupee denominated debt.

Indian officials have made it clear that they want a significant ‘greenium' for the sale in order to reduce the country's borrowing costs

Last year, green bond sales fell for the first time in a decade as monetary policy tightening impacted issuance and asset managers were chastised for alleged green washing. According to data compiled, companies and governments worldwide raised $863 billion in green, social, and sustainability linked bonds in 2022 a 19 percent decrease from the record $1.1 trillion raised in 2021.