Bank of Baroda Raises ₹100 Billion
“The Green Infrastructure Bond issue marks a significant milestone for Bank of Baroda and a defining moment for India’s domestic ESG bond market,” stated Debadatta Chand, the bank’s managing director.
In a landmark move, Bank of Baroda has successfully raised ₹100 billion through its Series I Long-Term Green Infrastructure Bonds. This initiative aims to bolster long-term funding for renewable energy and sustainable infrastructure projects across India.
The bond issue attracted a remarkable response, receiving total bids of ₹164.15 billion, which is over three times the base issue size of ₹50 billion. This overwhelming interest underscores the growing demand for green financing solutions in the Indian market.
These bonds, which will run for seven years, were issued through the National Stock Exchange’s Electronic Book Platform, and they carry an interest rate of 7.1% per year. The proceeds from this bond issuance will be allocated to eligible green projects that align with Bank of Baroda’s Green Financing Framework.
Bank of Baroda has made history by becoming the first Indian bank to issue long-term green infrastructure bonds locally. This move is expected to set a precedent for other financial institutions in the country.
In addition to this bond issuance, Bank of Baroda has also introduced the bob Green Hydrogen Financing Scheme, aimed at supporting green hydrogen production facilities for captive usage, further demonstrating its commitment to sustainable financing.
The bonds have received ‘AAA’ ratings with a stable outlook from CARE Ratings and ICRA Limited, reflecting strong confidence in the bank’s financial stability and the viability of the projects funded by these bonds.
As the bank continues to support India’s infrastructure needs and green energy transition goals, the successful issuance of these green infrastructure bonds is seen as a critical step towards achieving a more sustainable future.
With the increasing emphasis on environmental sustainability, the financial sector’s role in facilitating green investments is more crucial than ever. The next expected developments in this space will likely focus on how these funds will be deployed and the impact they will have on India’s green initiatives.
