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Bank of Baroda Pioneers India's First Domestic Green Infrastructure Bond Issue

Bank of Baroda has become the first Indian bank to successfully raise Green Infrastructure Bonds in the domestic market, securing ₹10,000 crore. The bond issue was heavily oversubscribed, attracting bids worth over ₹16,415 crore, which reflects strong investor confidence. The funds are earmarked for financing eligible green projects like renewable energy under the bank's Green Financing Framework. The bonds have received the highest safety rating of 'AAA' from major credit agencies, underscoring the offering's quality.

Key Points: Bank of Baroda First Indian Bank to Raise Green Bonds Domestically

  • Raised ₹10,000 crore via green bonds
  • Bonds have 7-year tenure at 7.10% coupon
  • Issue was oversubscribed by over 3 times
  • Proceeds to fund renewable energy projects
  • Bonds rated 'AAA' by top agencies
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Bank of Baroda becomes first bank in India to raise Green Infrastructure Bonds in domestic market

Bank of Baroda raises ₹10,000 crore via domestic green bonds, setting a new benchmark for sustainable finance in India with strong investor demand.

Bank of Baroda becomes first bank in India to raise Green Infrastructure Bonds in domestic market
"the issue received bids worth ₹16,415 crore, more than 3x the base issue size - Bank of Baroda"

New Delhi, March 7

Bank of Baroda has officially become the first bank in the country to successfully raise Green Infrastructure Bonds within the domestic market.

The state-owned lender announced a significant capital boost aimed specifically at environmental initiatives.

Posting on its X account, the bank said, "Bank of Baroda becomes first bank in India to raise Green Infrastructure Bonds in the domestic market."

According to the bank, it "successfully raised ₹10,000 crore through Series I Long-Term Green Infrastructure Bonds with a 7-year tenure at a coupon rate of 7.10% p.a."

The bank highlighted that "the issue received bids worth ₹16,415 crore, more than 3x the base issue size of ₹5,000 crore, reflecting strong investor confidence and a clear 'greenium' for the Bank's commitment to sustainable finance."

Dr Debadatta Chand, Managing Director & CEO of Bank of Baroda, stated that the strong demand and attractive pricing demonstrate investors' confidence in the Bank and its commitment to green and sustainable growth as part of its ESG journey.

The bank also noted that the capital that is raised is earmarked for specific ecological goals.

The bank confirmed that "the proceeds will fund eligible green projects under the Bank's Green Financing Framework, including renewable energy and sustainable infrastructure."

Investors were further reassured by the high credit quality of the offering.

The bank noted that "the bonds are rated 'AAA' with a stable outlook by CARE Ratings and ICRA," placing them in the highest safety category for domestic debt instruments.

By pioneering this domestic green bond, Bank of Baroda has not only fortified its own balance sheet but has also set a benchmark for other Indian financial institutions to follow in the pursuit of sustainable development goals.

- ANI

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Reader Comments

R
Rohit P
₹10,000 crore is a massive amount! Glad to see the funds are earmarked for renewable energy projects. This is the kind of forward-thinking we need from our banks. Kudos to BoB for setting the benchmark.
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Aman W
A good step, but I hope there's complete transparency on where this money actually goes. "Green projects" can be vague. The bank should regularly publish details of the specific infrastructure being funded so investors and the public can track the real impact.
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Sarah B
The AAA rating is key for investor confidence. At 7.10%, it's a decent return for a safe, green investment. Makes me wonder if retail investors will get a chance to participate in such instruments in the future.
K
Karthik V
This is a proud moment for Indian banking. Moving capital towards sustainability is crucial for our future. The 'greenium' mentioned is interesting – shows the market is willing to support responsible finance. More power to them! 🙌
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Nisha Z
Finally, some concrete action on the ESG front! Hope this funding accelerates solar and wind projects across the country, especially in rural areas. Development and environmental care must go hand in hand.

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