Bank of Baroda raises Rs 10,000 crore from Green Bonds

Mumbai: Bank of Baroda has successfully raised Rs10,000 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 Rs 16,415 crore, over three times the base issue size of Rs 5,000 crore. 

The seven-year bond was placed on EBP of NSE with Base issue of Rs. 5,000 crore and a Green shoe option of Rs 5,000 crore.

Despite current market volatility, BoB secured a competitive cut-off coupon of 7.10 per cent, reflecting strong investor confidence in the Bank.

In a press statement, 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 Rs 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.”