Mumbai: Bank of Baroda announced that it has successfully raised ₹10,000 crore through the issuance of its Series I Long-Term Green Infrastructure Bond, becoming the first bank in India to issue it in the country’s capital markets.
The green infrastructure bond issue witnessed strong investor participation, receiving bids aggregating ₹16,415 crore – more than three times the base issue size of ₹5,000 crore.
The seven-year Green Infrastructure Bond was placed on the Electronic Bidding Platform (EBP) of National Stock Exchange of India (NSE), with a base issue size of ₹5,000 crore and a greenshoe option of ₹5,000 crore.
Despite prevailing market volatility, the Green Infrastructure Bond achieved a competitive cut-off coupon of 7.10% per annum, reflecting strong investor confidence in Bank of Baroda’s financial position and sustainability initiatives.
Strong Demand Reflects Investor Confidence
The successful issuance of the Green Infrastructure Bond underscores growing investor interest in sustainable finance instruments in India.
The competitive pricing also enabled the bank to realise a “Greenium” – a pricing benefit typically associated with green-labelled bonds – reflecting market recognition of the bank’s commitment to sustainable finance and its ESG strategy.
With this issuance, Bank of Baroda has set a benchmark in India’s domestic sustainable debt market by introducing the Green Infrastructure Bond as a major financing instrument for environmentally responsible infrastructure development.
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Debadatta Chand, Managing Director & CEO of Bank of Baroda, said: “The Green Infrastructure Bond issue marks a significant milestone for Bank of Baroda and a defining moment for India’s domestic ESG bond market.
Raising ₹10,000 crore with such strong demand and attractive pricing demonstrates the deep confidence investors have in the Bank and in our commitment to green and sustainable growth as part of our broader ESG journey. These funds will support India’s infrastructure needs, enabling a transition towards a cleaner, greener and more sustainable future.”
Funding Green Projects and Sustainable Infrastructure
According to the bank, proceeds from the Green Infrastructure Bond will be deployed toward eligible green projects in line with Bank of Baroda’s Green Financing Framework and applicable regulatory guidelines.
The funds raised through the bond will primarily support long-term financing of environmentally sustainable sectors such as renewable energy and other green infrastructure initiatives that contribute to India’s climate and sustainability goals.
Green Infrastructure Bond: Highest Credit Ratings
The Green Infrastructure Bond issuance has received the highest credit rating of ‘AAA’ with a Stable outlook from CARE Ratings and ICRA Limited, highlighting the strong credit profile of the bank and the reliability of the bond structure.
With this issuance, Bank of Baroda has strengthened its position in sustainable financing while also contributing to the expansion of India’s domestic green bond market.
