Context:
In March 2026, Bank of Baroda raised ₹10,000 crore through Series-I long-term Green Infrastructure Bonds, becoming the first bank in India to issue domestic green bonds specifically for infrastructure financing.
What is a Green Bond?
A green bond is a fixed-income financial instrument used to raise funds for projects that have environmental or climate benefits. The money raised through these bonds is specifically earmarked for environmentally sustainable activities.
Financial Terms
- The annual cut-off coupon rate was fixed at 7.1%.
- The issue achieved a “greenium”, meaning the bonds were issued at a slightly lower yield due to strong demand for green investments.
About the Green Bond Issuance
- The bonds have a tenure of 7 years.
- They were issued through the Electronic Book Provider platform of the National Stock Exchange of India in Mumbai.
- The base issue size was ₹5,000 crore, with an additional greenshoe option of ₹5,000 crore.
Credit Ratings
The bonds received ‘AAA’ (Stable) ratings from:
- CARE Ratings
- ICRA
These ratings indicate high safety and strong credit quality.
Use of Funds
The funds raised will finance projects under BoB’s Green Financing Framework, including:
- Renewable energy projects
- Sustainable infrastructure development
- Other environmentally friendly initiatives
