New Delhi, Jan 6 (IANS): The government on Friday announced the auction of Rs 16,000 crore of sovereign green bonds (SGrBs) in two tranches.

"As announced in the Union Budget 2022-23, the government of India, as part of its overall market borrowings, will be issuing Sovereign Green Bonds (SGrBs), for mobilising resources for green infrastructure. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy," the Finance Ministry said in a statement.

The Centre will auction green bonds of five-year and 10-year duration worth Rs 4,000 crore each on January 25 and February 9, 2023, adding that it would be a uniform price auction.

Five per cent of the notified amount of sale will be reserved for retail investors as specified under the "Scheme for Noncompetitive Bidding Facility in the auction of government of India Dated Securities and Treasury Bills", the statement said.

SGrBs will be eligible for trading in the secondary market and will be designated as specified securities under the 'Fully Accessible Route' for investment in the Government Securities by non-residents.