Bank of Baroda’s Green Infrastructure Bonds
“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. This statement comes as the bank announced the successful raising of ₹100 billion through its green infrastructure bonds, aimed at supporting renewable energy and sustainable infrastructure projects.
The bonds, which will run for seven years, were issued through the National Stock Exchange’s Electronic Book Platform. With an attractive interest rate of 7.1% per year, the Series I Long-Term Green Infrastructure Bonds have garnered significant interest from investors.
In a remarkable display of demand, the bond issue received total bids of ₹164.15 billion, more than three times the base issue size of ₹50 billion. This overwhelming response highlights the growing appetite for green investments in India.
Furthermore, the bonds have been assigned ‘AAA’ ratings with a stable outlook by CARE Ratings and ICRA Limited, indicating strong confidence in the bank’s financial stability and the viability of the projects funded by these bonds.
The proceeds from this bond issuance will be utilized to finance eligible green projects under the bank’s green financing framework, reinforcing the commitment to sustainable development.
Bank of Baroda has also made history by becoming the first Indian bank to issue long-term green infrastructure bonds locally, setting a precedent for future initiatives in the country.
In addition to this bond issuance, Bank of Baroda recently introduced the bob Green Hydrogen Financing Scheme, aimed at supporting green hydrogen production facilities for captive usage. This initiative further underscores the bank’s dedication to promoting sustainable energy solutions.
As the demand for green financing continues to grow, the successful launch of these green infrastructure bonds positions Bank of Baroda as a leader in the evolving landscape of sustainable finance in India.
Looking ahead, the funds raised through the bond issue will support India’s infrastructure needs and green energy transition goals, aligning with the country’s broader sustainability objectives.
Details remain unconfirmed regarding any future bond issuances or additional green financing initiatives planned by the bank.
