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
Mumbai : Bank of Baroda (Bank), India’s International Bank,
today 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 domestic Green
Bonds. The issue garnered 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 EBP of NSE with Base issue of Rs. 5000
Cr and a Green shoe option of Rs. 5000 Cr. Despite current market volatility,
the Bank secured a competitive cut-off coupon of 7.10%, reflecting strong
investor confidence in the Bank.
Given
the tight pricing achieved, the Bank has effectively realised a “Greenium” from
the market, due 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 of 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.