Bank of Baroda Raises ₹10,000 Crore via First Green Infra Bonds in India
Bank of Baroda (BoB) has raised ₹10,000 crore through the issuance of a 7-year green infrastructure bond, aimed at financing renewable energy projects. The bonds, priced at 7.10%, attracted bids totaling ₹16,000 crore, allowing BoB to meet its target. This marks the first domestic green bond issuance by a public or private sector bank in India. Proceeds will fund various renewable energy initiatives. Meanwhile, SIDBI has canceled its bond issuance due to mismatched investor expectations.
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Bank of Baroda (BoB) has successfully raised ₹10,000 crore by issuing a 7-year green infrastructure bond, the first such issuance by a public sector bank in India. The bonds, priced at 7.10%, saw demand exceed expectations with bids totaling ₹16,000 crore.
The funds will be directed towards financing renewable energy projects such as wind, solar, hydro, and bioenergy, as well as energy-efficient infrastructure. In contrast, SIDBI scrapped its plan to raise ₹8,000 crore through bonds due to a mismatch in expectations and demand for shorter tenor instruments. Investor appetite remains strong for long-duration bonds.
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