Bonds and the Bond Market in India
Green Bonds and Other Themes
India has issued sovereign green bonds and other themed bonds to fund climate projects, and sovereign gold bonds allowed investors to hold gold in bond form.
Bonds with a purpose.
Sovereign green bonds
The government issued its first in 2023 to fund low-carbon projects.
Gold bonds
Sovereign gold bonds let investors hold gold-linked bonds paying a small interest.
Masala bonds
Rupee-denominated bonds sold overseas, exposing investors to currency risk.
Tax-free bonds
Some infrastructure bonds paid interest exempt from tax.
A green project
Proceeds from a green bond fund a solar plant.
Assuming all bond labels mean the same risk
Check the issuer and terms.
Key takeaways
- Green bonds fund climate projects.
- Gold bonds link to gold prices.
- Masala bonds are rupee-denominated.
- Tax status varies.
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