Module: General Practice
Q59: Which of the following statements regarding "Sovereign Green Bonds" (SGrBs) and the "Greenium" concept are Correct?
SGrBs are classified as "Specified Securities" under the Fully Accessible Route (FAR) for non-residents.
"Greenium" refers to the higher interest rate the government pays to investors for green projects.
Funds raised from SGrBs cannot be used for nuclear power projects.
"Greenium" refers to the higher interest rate the government pays to investors for green projects.
Funds raised from SGrBs cannot be used for nuclear power projects.
✅ Correct Answer: B
Statement 1 is Correct: SGrBs are eligible for FAR, meaning FPIs can invest in them without any limits.
Statement 2 is Incorrect: "Greenium" (Green Premium) means a lower yield (interest rate). Investors accept a lower return because of the safety and ESG value of the bond.
The government saves money (pays less interest). Statement 3 is Correct: The Green Bond Framework explicitly excludes Nuclear Power, large Hydro (>25MW), and biomass from protected areas.
Statement 2 is Incorrect: "Greenium" (Green Premium) means a lower yield (interest rate). Investors accept a lower return because of the safety and ESG value of the bond.
The government saves money (pays less interest). Statement 3 is Correct: The Green Bond Framework explicitly excludes Nuclear Power, large Hydro (>25MW), and biomass from protected areas.