With the State Bank of India, the country’s largest lender, planing to raise up to US$3 billion in India’s largest overseas green bond issue, investor support will be a key factor determining the success of the issue.  It is at this time that HSBC’s corporate credit analysts have published a report showing the growing evidence that green bonds outperform traditional bonds.  The reasons for this could include the strong demand for green bonds due to its scarcity value, and that this type of issue is less volatile than regular bonds.  Though still a small fraction of the entire debt market, issuance of green bonds have increased dramatically to a record of US$95 billion in 2016.  HSBC’s conclusions are good news not only for the State Bank of India but also for investors keen on responsible investing – they can now do good whilst generating healthy returns.


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