THEBUSINESSBYTES
BUREAU
MUMBAI,
MARCH 6, 2026
Bank of Baroda
(Bank), India’s International Bank, on Thursday announced that it has
successfully raised ₹10,000
crore through the issuance of Series I Long-Term Green Infrastructure Bonds,
becoming the first bank in India to issue Green Infrastructure Bonds in the
domestic market. The issue witnessed overwhelming investor demand, receiving
bids aggregating ₹16,415 crore — over three times the base issue size of
₹5,000 crore. The seven-year bond was placed on the EBP platform of NSE with a
base issue size of ₹5,000 crore and a green shoe option of ₹5,000 crore.
Despite prevailing market volatility, the Bank secured a
competitive cut-off coupon of 7.10%, reflecting strong investor confidence in
the institution.
Given the tight
pricing achieved, the Bank has effectively realised a “Greenium” from the
market, owing to its commitment to sustainable and green finance, as well as
the strong positioning of its ESG roadmap.
Commenting on the
landmark issue, Dr. Debadatta Chand, Managing Director & CEO, 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. These funds will support India’s infrastructure needs, enabling a
transition towards a cleaner, greener and more sustainable future.”
The proceeds from the Green Infrastructure Bonds will be deployed towards eligible green projects in line with the Bank’s Green Financing Framework and applicable regulatory guidelines, enabling long-term funding for critical sectors such as renewable energy and other environmentally sustainable infrastructure projects.
The bonds are rated ‘AAA’ with a Stable outlook by Care Ratings and ICRA.
