India is ready to test investor demand with a new round of sovereign green bond sales. The Reserve Bank of India plans to auction Rs 5,000 crore ($600 million) of five-year notes. In January, the debut sale raised 80 billion rupees with a “greenium” of six basis points over benchmark yields, showcasing demand for environmentally driven securities. While India’s bond yields have risen due to global monetary policy changes, the success of green bonds might elucidate the nation’s path toward affordable financing for green energy transition. Analysts predict increasing demand for green bonds in Asia, expecting them to be valued higher than conventional securities. Foreign investors’ return and inclusion in global bond indices are poised to expand demand for India’s rupee-denominated green bonds.