HIGHLIGHTS
- Nifty India Sovereign Green Bond indices are first of its kind as they seek to capture the performance of Indian Sovereign Green Bonds that finance green infrastructure
- The proceeds from Sovereign Green Bonds will be deployed in public sector projects, which will help in reducing the carbon intensity of the economy
- Sovereign green bonds, NSE Indices, NSE, Nifty GSec May 2029 Index, ETFs, index funds
NSE Indices, NSE’s index services subsidiary, on Monday launched India’s first ever sovereign green bond indices. Besides, it launched a new target maturity index Nifty GSec May 2029 index that is expected to appeal to investors looking to invest in debt portfolios with target maturity theme.
Sovereign Green Bond Indices
As per NSE Indices, the Nifty India Sovereign Green Bond Jan 2028 Index has a maturity date of January 31, 2028. It includes Government securities (G-Secs) issued under the category of sovereign green bonds (SGrBs) maturing during the six-month period ending January 31, 2028. The Nifty India Sovereign Green Bond Jan 2033 index, on the other hand, has a maturity date of January 31, 2033. It includes government securities (G-Secs) issued under the category of sovereign green bonds (SGrBs) maturing during the twelve month period ending January 31, 2033.
Both indices have base date of January 27, 2023, and a base value of 1,000. The indices will be reviewed monthly. These two indices follow target maturity date structure.
Mukesh Agarwal, CEO – said, “The Nifty India Sovereign Green Bond indices are first of its kind as they seek to capture the performance of Indian Sovereign Green Bonds that finance green infrastructure. The two indices follow target maturity date structure maturing in 2028 and 2033. As per Government of India (GoI), the proceeds from Sovereign Green Bonds will be deployed in public sector projects which will help in reducing the carbon intensity of the economy.”
The indices, Agarwal said, are expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in form of Exchange Traded Funds (ETFs), index funds and structured products, which can provide fixed income investors efficient and cost-effective access to the Indian sovereign green bond market while making a positive impact on the society.
Nifty GSec May 2029 index
Nifty GSec May 2029 index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in form of Exchange Traded Funds (ETFs), index funds and structured products, NSE said.
The Nifty G-Sec May 2029 index follows a target maturity structure with maturity date of May 04, 2029. It includes government securities maturing twelve month ending April 30, 2029. The Nifty G-Sec May 2029 index has a base date of February 23, 2023, and a base value of 1,000. The index will be reviewed semi-annually.
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