The Reserve Bank of India (RBI) has expanded the list of specified Government securities available for non-resident investment under the Fully Accessible Route (FAR), now including 10-year Sovereign Green Bonds (SGrBs).

In a move aimed at boosting foreign investment in India’s green initiatives, the central bank has designated 10-year SGrBs to be issued by the government in the second half of the 2024-25 fiscal year as “specified securities” under the FAR. 

Introduced in 2020 in collaboration with the government, the FAR allows non-resident investors, including Foreign Portfolio Investors (FPIs), Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and other eligible entities, to invest in specified Indian government debt without being subject to investment ceilings.

The government’s ambitious issuance plan for the second half of FY 2024-25 (October 1, 2024, to March 31, 2025) includes raising ₹6.61 lakh crore through government securities. This will include ₹20,000 crore raised through Sovereign Green Bonds, with four planned issuances of ₹5,000 crore each—two for 10-year tenors and two for 30-year tenors.

By bringing SGrBs under the FAR, the RBI aims to attract more global capital to fund India’s sustainability goals, positioning the country as a key player in the global green bond market.