Perpetual Bonds
In News
The Indian Renewable Energy Development Agency Ltd (IREDA) raised ₹453 crore at 7.70% per annum through its second issue of Perpetual Bonds, strengthening its capital base for financing green energy projects.
About Perpetual Bonds
- Definition: Fixed-income securities with no maturity date — they pay interest indefinitely.
- Other Names: Perps or Consol Bonds.
- Issuer’s Obligation:
- No mandatory redemption of principal.
- Principal is repaid only if issuer exercises the call option.
- Call Option: Allows issuer to redeem bonds after a set period (5–10 years).
Features
- Hybrid Nature: Debt instrument with equity-like traits.
- Priority in Bankruptcy:
- Paid after secured creditors but before shareholders.
- Interest Rate: Higher than normal bonds to compensate for indefinite tenure & risk.
- Interest Rate Sensitivity: Market price fluctuates heavily with interest rate changes.
- Accounting Treatment: Often treated as equity, helping issuers raise funds without diluting ownership.
In India
- Mainly issued by banks & financial institutions to meet capital adequacy norms.
- Example: IREDA (2025) issuance to fund renewable energy financing.
Why Important?
- Strengthens capital structure without equity dilution.
- Provides long-term stable income for investors.
- Useful in green financing & infrastructure funding.
National Forest Martyrs Day 2025
Why in News?
Tributes were paid to Forest Department personnel who lost their lives while safeguarding forests and wildlife, on National Forest Martyrs Day, observed on September 11th, 2025.
About National Forest Martyrs Day
- Observed every year on September 11 in India.
- Pays tribute to forest officials, staff, and community members who sacrificed their lives for forest conservation and wildlife protection.
- Recognises the risks faced by protectors of natural resources.
Historical Background
- Linked to the Khejarli Massacre (1730, Marwar Kingdom, Rajasthan).
- Maharaja Abhai Singh ordered Khejri trees to be cut for palace construction.
- Amrita Devi Bishnoi and her community resisted by hugging trees (precursor to Chipko Movement).
- 363 Bishnois were killed protecting trees.
- Inspired later environmental movements, especially Chipko Movement (1970s).
- In 2013, MoEFCC declared September 11 as National Forest Martyrs Day.
Significance
- Tribute to all defenders of forests — from illegal logging to poaching.
- Reinforces the idea that forests = lifelines:
- Regulate climate
- Purify air & water
- Maintain biodiversity
- Observed through memorial services, plantation drives, awareness campaigns, and educational events.
- Promotes eco-conscious living & connects environmental protection with cultural ethos.
Current Affairs Image Suggestion
An illustration showing:
- Silhouettes of Bishnoi villagers hugging Khejri trees,
- A flame memorial dedicated to forest martyrs,
- Forest guards saluting,
Green forests in the background with the words:
“National Forest Martyrs Day – September 11”.
