Daijiworld Media Network - New Delhi

New Delhi, Sep 22: Sagarmala Finance Corporation, India's first maritime-focused lender, plans to raise funds through the country's maiden blue bond issue on September 28, its Managing Director LVS Sudhakar Babu said.

The lender aims to raise ?600 crore through the 10-year bonds, including a greenshoe option of ?500 crore, according to a provisional term sheet.

Blue bonds are debt instruments used to finance sustainable water and marine-related projects, including clean water initiatives, recycling, sustainable shipping, fishing, ocean energy and marine mapping.

The proceeds from the proposed issue will be used for lending to the maritime sector, greenfield port projects, coastal road networks and other related projects, Babu told Reuters on Monday. The funds are expected to be deployed during the current financial year.

SBI Capital Markets is the arranger for the issue, which has been assigned an AA+ rating by Icra and Care.

The lender will invite coupon and commitment bids from investors on September 28, Babu said. It has also approached major insurance companies and provident fund institutions to participate in the issue.

The proposed bond sale comes amid increasing efforts to mobilise dedicated financing for India's maritime infrastructure and sustainable development projects.

Vadodara Municipal Corporation in Gujarat is also planning to raise around ?200 crore through a blue bond issue, according to earlier Reuters reporting.