Explanation:

A study by Reserve Bank of India (RBI) noted that the cost of issuing green bonds has generally remained higher than other bonds in India, largely due to asymmetric information.

• The average coupon rate for green bonds issued since 2015 with maturities between 5 to 10 years have generally remained higher than the corporate and government bonds with similar tenure.
• For the US dollar-denominated green bonds with tenure of more than or equal to 10 years, the coupon rate was, however lower than the corporate bonds.
• Most of the green bonds in India are issued by the public sector units or corporates with better financial health.
• It is evident from the fact that the private sector issuers of green bonds, on average, reported lower debt-to-assets ratio compared to the non-issuers of green bond.
• Green bonds constituted only 0.7 percent of all the bonds issued in India since 2018, and bank lending to the non-conventional energy constituted about 7.9 percent of outstanding bank credit to the power sector, as of March 2020.
• High borrowing cost has been perhaps the most important challenge and analysis indicates that it could be due to the asymmetric information
• Therefore, developing a better information management system in India may help in reducing maturity mismatches, borrowing costs and lead to efficient resource allocation in this segment.
• A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.

Hence only statement 1st is correct.