Daijiworld Media Network - Mumbai

Mumbai, Mar 6: Bank of Baroda has raised Rs 10,000 crore through Series I long-term green infrastructure bonds, becoming the first bank in India to issue domestic green bonds.

The seven-year bond was issued on the Electronic Book Provider platform of the National Stock Exchange of India with a base issue of Rs 5,000 crore and a greenshoe option of Rs 5,000 crore. The issue witnessed strong investor interest, receiving bids worth Rs 16,415 crore.

Despite market volatility, the bank fixed the annual cut-off coupon rate at 7.1%. The tight pricing resulted in a “greenium”, indicating strong investor appetite for sustainable finance and confidence in the bank’s environmental, social and governance (ESG) initiatives.

Debadatta Chand, managing director and chief executive officer of Bank of Baroda, said the funds raised will support India’s infrastructure development while promoting environmentally sustainable projects.

According to the bank, the proceeds from the bonds will be utilised to finance eligible green projects in line with its green financing framework, contributing to the country’s transition toward a cleaner and more sustainable future.