Bank of Baroda launches India’s first domestic green infrastructure bond

Bank of Baroda has raised Rs 10,000 crore through the issuance of green infrastructure bonds in the domestic market, becoming the first Indian bank to undertake such an issuance. The bonds are aimed at financing renewable energy and other eligible sustainable infrastructure projects.

The bank issued Series I Long-Term Green Infrastructure Bonds with a tenure of seven years and a coupon rate of 7.10% per annum. The proceeds will be deployed in projects that meet the eligibility criteria under the bank’s Green Financing Framework.

According to the bank, the issue received bids worth Rs 16,415 crore against a base issue size of Rs 5,000 crore, reflecting strong investor demand. The level of oversubscription enabled the bank to raise Rs 10,000 crore under the issuance.

The bonds have been assigned a ‘AAA’ rating with a stable outlook by Credit Analysis and Research (CARE) Ratings and the Investment Information and Credit Rating Agency (ICRA).

Debadatta Chand, Managing Director and Chief Executive Officer (CEO) of Bank of Baroda, stated that the strong response and competitive pricing indicate investor confidence in the bank and its approach to environmental, social and governance (ESG) initiatives.

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