India’s largest public sector bank, SBI, has made headlines after its ₹10,000 crore Green Bond issuance was oversubscribed over four times, highlighting a massive investor appetite for Environmental, Social, and Governance (ESG)-aligned instruments. This marks one of India’s biggest green bond successes, attracting interest from domestic mutual funds, sovereign wealth funds, and foreign portfolio investors. The bond carries a 10-year maturity with a coupon rate of 7.24%, and proceeds will fund renewable energy, EV infrastructure, and sustainable agriculture initiatives.
This surge in demand underscores a larger trend: Indian investors are rapidly aligning portfolios with sustainability goals. SEBI’s recent push for mandatory ESG disclosures and inclusion of ESG scores in mutual fund ratings is driving awareness and confidence. For retail and HNI investors, this opens a new route to combine ethical investing with stable returns. As India pushes for net-zero by 2070, such instruments are expected to dominate future debt markets, creating both climate and capital impact.
