In a first, BoB raises Rs 10,000 crore from green infra bonds

MUMBAI: Bank of Baroda raised Rs 10,000 crore through Series I long-term green infrastructure bonds, becoming the first bank in India to issue domestic green bonds.The seven-year bond was placed on the Electronic Book Provider platform of the National Stock Exchange of India with a Rs 5,000 crore base issue and a Rs 5,000 crore greenshoe option and received bids worth Rs 16,415 crore. The bank fixed a 7.1% annual cut-off coupon despite market volatility. Tight pricing yielded a “Greenium”, signalling investor appetite for sustainable finance and its ESG track.Debadatta Chand, MD and CEO, said, “These funds will support India’s infrastructure needs, enabling a transition towards a cleaner, greener and more sustainable future.” According to the bank, proceeds will fund eligible green projects under its green financing framework.