Context: Recently, Power Finance Corporation Ltd (PFC), the leading NBFC in the power sector, has issued its maiden Euro Green Bond.
What is a Euro Green Bond?

• It is the first-ever Euro denominated Green bond issuance from India.
• Moreover, it is the first-ever Euro issuance by an Indian NBFC and the first Euro bond issuance from India since 2017.
• The issuance saw strong participation from institutional investors across Asia and Europe with participation from across 82 accounts and was oversubscribed 2.65 times.

What is Green Bond?

• A green bond is like any other bond where a debt instrument is issued by an issuer for raising funds from investors. However, what differentiates a Green bond from other bonds is that the proceeds of a Green Bond offering are ‘ear-marked’ for use towards financing ‘green’ projects.
• The Green Bonds may come with tax incentives such as tax exemptions and tax credits to attract investors. 
• The World Bank is a major issuer of green bonds. It has issued 164 such bonds since 2008, worth a combined $14.4 billion.
• In India, YES Bank was the first bank to issue green bonds in 2015 for financing renewable and clean energy projects.
• Ghaziabad Municipal Corporation, a civic body in Uttar Pradesh, has become India’s first municipal corporation to successfully list the country’s first green municipal bonds on the Bombay Stock Exchange (BSE) in April 2021.