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Green and Social Bond Impact Report 2023

Why is it in the news?

  • The International Finance Corporation (IFC) recently released Green and Social Bond Impact Report 2023.

Key highlights of the report

  • IFC launched the Green Bond Program in 2010 and the Social Bond Program in 2017.
  • $2 billion was raised through Green bonds, expected to reduce 3.3 million metric tons of carbon dioxide equivalent per year.
  • $1.2 billion was raised through Social bonds, targeting sectors like Agribusiness, Gender finance, and Education.
About Green Bonds

路聽聽聽聽聽聽 Green Bonds are debt securities financing environment-friendly projects such as Sustainable Water and Waste Management, Green Buildings, and Pollution control.

路聽聽聽聽聽聽 In 2022, India’s Ministry of Finance approved India鈥檚 First Sovereign Green Bonds (SGBs) Framework, excluding projects like nuclear power generation and landfill projects.

路聽聽聽聽聽聽 Yes Bank Ltd issued India鈥檚 First Green Bond in 2015.

路聽聽聽聽聽聽 In 2023, India issued the first tranche of its first SGBs worth Rs. 80 billion.

About Social Bonds

路聽聽聽聽聽聽 Social bonds are financial instruments issued by governments and corporations to fund projects addressing social issues like affordable housing and healthcare, benefiting vulnerable populations.

路聽聽聽聽聽聽 In 2023, the National Bank for Agriculture and Rural Development (NABARD) raised more than Rs. 1000 crore via social bonds.

 

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