NBFCs are raising lower-cost capital via green bonds as investor demand rises. Strong reporting, clean-energy lending, and clear use-of-proceeds help them access this growing ESG market.
Key Points
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India’s sustainable debt market has crossed USD 55.9 billion, with green bonds making up most of the issuance.
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NBFCs are tapping green and ESG bonds to raise cheaper, longer-tenor capital.
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Global and domestic investors are actively seeking climate-aligned opportunities.
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Recent NBFC issuances from IREDA, Vivriti Capital, and Dugar Finance show how both large and mid-size lenders are using green debt.
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Green assets like EV loans, renewables, and energy-efficiency projects offer stable cashflows that attract ESG investors.
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Issuers benefit from better pricing, access to new investor pools, and stronger credibility.
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Green debt requires clear use-of-proceeds, transparent reporting, and third-party verification.
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NBFCs with clean-energy exposure and ESG reporting capabilities are best positioned to raise green funding.
