Bank of Baroda has successfully raised ₹100 billion through green infrastructure bonds, supporting renewable energy and sustainable projects in India.
Bank of Baroda Raises ₹100 Billion Through 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,” said Debadatta Chand, a key participant in the issuance.
On March 5, 2026, Bank of Baroda successfully raised ₹100 billion through green infrastructure bonds aimed at supporting renewable energy and sustainable infrastructure projects. This issuance is notable as it positions Bank of Baroda as the first Indian bank to issue long-term green infrastructure bonds locally.
The bond issue attracted significant investor interest, receiving bids worth ₹164.15 billion, which is over three times the base issue size of ₹50 billion. The bonds have a tenure of seven years and an interest rate of 7.1% per year, reflecting a strong demand for green investments.
“The proceeds from the bond issuance will be used to finance eligible green projects under the bank’s green financing framework and in accordance with regulatory guidelines,” Bank of Baroda stated, emphasizing the commitment to sustainability.
The bonds were issued through the National Stock Exchange’s Electronic Book Platform and were fully subscribed with a base size of ₹5,000 crore and a greenshoe option of another ₹5,000 crore. This indicates robust confidence from investors in the bank’s green initiatives.
Additionally, the bonds have been assigned ‘AAA’ ratings with a stable outlook by CARE Ratings and ICRA Limited, further enhancing their attractiveness. The pricing reflects a ‘greenium’, indicating better pricing achieved by green-labelled bonds compared to conventional bonds.
Chand further noted, “The funds raised through the bond issue will support India’s infrastructure needs and green energy transition goals,” highlighting the broader implications of this financial move.
In conjunction with the bond issuance, Bank of Baroda has also introduced the bob Green Hydrogen Financing Scheme to support green hydrogen production facilities, showcasing a comprehensive approach to green financing.
The successful issuance of these bonds marks a pivotal moment for the Indian financial landscape, aligning with global trends towards sustainable investment and infrastructure development.
As the green infrastructure bond market continues to evolve, further developments are anticipated, reflecting the growing importance of sustainable financing in India.
