Mumbai, Mar 05: Bankof Baroda (Bank), India’s International Bank, today announced that it has successfully raised ₹10,000 crore through the issuance of Series I Long-Term Green Infrastructure Bonds, becoming the first bank in India to issue domestic Green Bonds. The issue garnered overwhelming investor demand, receiving bids aggregating ₹16,415 crore, over three times the base issue size of ₹5,000 crore. The seven-year Bond was placed on EBP of NSE with Base issue of Rs. 5000 Cr and a Green shoe option of Rs. 5000 Cr. Despite current market volatility, the Bank secured a competitive cut-off coupon of 7.10%, reflecting strong investor confidence in the Bank.
Given the tight pricing achieved, the Bank has effectively realised a “Greenium” from the market, due to its commitment to sustainable and green finance, as well as the strong positioning of its ESG roadmap.
Commenting on the landmark issue, Dr. Debadatta Chand, Managing Director & CEO, 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.”
The proceeds from the Green Infrastructure Bonds will be deployed towards eligible green projects in line with the Bank’s Green Financing Framework and applicable regulatory guidelines, enabling long-term funding of critical sectors such as renewable energy and other environmentally sustainable infrastructure projects.
The bonds are rated ‘AAA’ with a Stable outlook by Care Ratings and ICRA.