Securitisation as an enabler of green asset finance in India

This report discusses the role green asset backed securities (ABS) can play in helping India finance its green infrastructure and improve the lives of the poor and disadvantaged. However, we acknowledge that securitisation requires specialised structuring expertise, complex credit analysis and a specialised investor base.

Green ABS should therefore be seen as complementary to other measures that can be taken to improve the flow of finance, such as greater engagement of banks, which have the ability to aggregate small exposures on their books and finance them with the issue of green bonds or green covered bonds. It is also complementary to the existing portfolio trading market which already allows banks to bundle green loan portfolios and sell the whole portfolio to an investor or a club of investors.