<p>The Insurance Regulatory and Development Authority of India has said insurers will be allowed to classify their sovereign green bond purchases as infrastructure investments.</p>.<p>The regulator, in a circular dated Jan 13, said the move was made with the objective of "de-concentration and diversification" of insurers' infrastructure portfolios as well as "from the perspective of participation in environmental, social and governance (ESG) initiatives."</p>.<p>Insurance firms had asked for clarification on how they could classify investments made in these green bonds, which are being issued for the first time, said traders.</p>.<p>India aims to raise 160 billion rupees ($1.96 billion) through the issue of its first-ever sovereign green bonds this financial year. The Reserve Bank of India will auction 5- and 10-year green bonds worth 40 billion rupees each on Jan 25 and on Feb 9.</p>.<p>The investments in green bonds can qualify towards statutory liquidity ratio (SLR) - the minimum percentage of deposits commercial banks are required to invest in liquid assets, such as government bonds.</p>.<p>Finance Minister Nirmala Sitharaman announced the plan to issue sovereign green bonds in the 2022-23 budget as Asia's third-largest economy attempts to tap the domestic debt market to finance green infrastructure projects. ($1 = 81.5600 Indian rupees)</p>
<p>The Insurance Regulatory and Development Authority of India has said insurers will be allowed to classify their sovereign green bond purchases as infrastructure investments.</p>.<p>The regulator, in a circular dated Jan 13, said the move was made with the objective of "de-concentration and diversification" of insurers' infrastructure portfolios as well as "from the perspective of participation in environmental, social and governance (ESG) initiatives."</p>.<p>Insurance firms had asked for clarification on how they could classify investments made in these green bonds, which are being issued for the first time, said traders.</p>.<p>India aims to raise 160 billion rupees ($1.96 billion) through the issue of its first-ever sovereign green bonds this financial year. The Reserve Bank of India will auction 5- and 10-year green bonds worth 40 billion rupees each on Jan 25 and on Feb 9.</p>.<p>The investments in green bonds can qualify towards statutory liquidity ratio (SLR) - the minimum percentage of deposits commercial banks are required to invest in liquid assets, such as government bonds.</p>.<p>Finance Minister Nirmala Sitharaman announced the plan to issue sovereign green bonds in the 2022-23 budget as Asia's third-largest economy attempts to tap the domestic debt market to finance green infrastructure projects. ($1 = 81.5600 Indian rupees)</p>