Bank of Baroda Becomes First Bank in India to Raise Green Infrastructure Bond in Domestic Market
Bank has raised Rs 10,000 crore at a competitive coupon of 7.10% p.a., reflecting a Greenium for the Bank’s commitment towards Green finance
Bank of Baroda has become the first bank in India to issue Green Infrastructure Bonds in the domestic market, successfully raising ₹10,000 crore through its Series I Long-Term Green Infrastructure Bonds. The bond issue attracted strong investor interest, with bids worth ₹16,415 crore, more than three times the base issue size of ₹5,000 crore.
The seven-year bond was issued through the Electronic Book Provider (EBP) platform of National Stock Exchange of India, with a base issue of ₹5,000 crore and a greenshoe option of ₹5,000 crore.
Despite prevailing market volatility, the bank secured a competitive cut-off coupon of 7.10% per annum, reflecting strong market confidence and enabling the bank to realise a “Greenium” — a pricing advantage typically associated with green bonds due to investor preference for sustainable investments.
Commenting on the landmark development, 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.”
He added that the funds raised will help support India’s infrastructure development and accelerate the transition toward a cleaner and more sustainable economy.
The proceeds from the green bond issuance will be deployed in accordance with the bank’s Green Financing Framework and regulatory guidelines to finance eligible green projects, including renewable energy and environmentally sustainable infrastructure initiatives.
The bonds have been assigned the highest ‘AAA’ credit rating with a Stable outlook by CARE Ratings and ICRA Limited, underscoring the strong financial profile of the bank and the credibility of the issue.
The successful issuance marks an important step in the growth of India’s domestic ESG and green finance market, signalling increasing investor appetite for sustainable infrastructure funding.
