Bank of Baroda Raises ₹10,000 Cr Via 7-Yr Green Infrastructure Bonds

Bank of Baroda has become the first bank in India to raise Green Infrastructure Bonds in the domestic market. The Bank has successfully raised ₹10,000 crore through Series I Long-Term Green Infrastructure Bonds with a 7-year tenure at a coupon rate of 7.10% p.a. The proceeds will fund eligible green projects under the Bank’s Green Financing Framework, including renewable energy and sustainable infrastructure. 

Bank of Baroda explained on social media about the issue of receiving bids worth ₹16,415 crore. This, as the company explained, is more than 3x the base issue size of ₹5,000 crore, reflecting strong investor confidence and a clear “greenium” for the Bank’s commitment to sustainable finance.

The bonds are rated ‘AAA’ with a stable outlook by CARE Ratings and ICRA. Debadatta Chand, Managing Director and Chief Executive Officer (CEO) of Bank of Baroda, stated that the strong demand and attractive pricing demonstrate investors’ confidence in the Bank and its commitment to green and sustainable growth as part of its ESG journey.

KPI Green Completes Externally Credit-Enhanced Green Bond at NSE 

In a related development in India’s green bond market, renewable energy developer KPI Green Energy  had recently issued its first Green Bond of up to ₹670 crore at the National Stock Exchange (NSE), Mumbai.

Gujarat-based renewable energy developer and operator KPI Green said this issuance is backed by a 65% guarantee from GuarantCo, part of the Private Infrastructure Development Group (PIDG). The five-year bond, carrying a coupon rate of 8.50% per annum with a quarterly amortising profile, has been assigned a rating of AA+(CE) by CRISIL and ICRA. 

Green financing is finally picking up pace in India, although more clear guidelines on end use and eligible categories would help a lot in attracting a wider set of investors.