“Bank of Baroda Raises ₹10,000 Crore via Green Infrastructure Bonds – A First for the Bank”
First Indian bank to issue domestic green bonds, signaling strong investor interest in sustainable finance
MUMBAI: Bank of Baroda has successfully raised ₹10,000 crore through its Series I long-term green infrastructure bonds, becoming the first bank in India to launch domestic green bonds.
The seven year bonds were offered on the National Stock Exchange of India’s Electronic Book Provider platform, with a ₹5,000 crore base issue and an additional ₹5,000 crore greenshoe option. Investor response was robust, with bids totaling ₹16,415 crore. Despite volatile market conditions, the bank set a 7.1% annual cut off coupon. The tight pricing generated a “Greenium,” reflecting strong demand for ESG aligned sustainable investments.
Debadatta Chand, MD and CEO of Bank of Baroda, stated, “These funds will support India’s infrastructure requirements, promoting a cleaner, greener, and more sustainable future.” The raised capital will be directed towards eligible green projects as per the bank’s green financing framework.
