State-run lender
Bank of Baroda
has raised ₹10,000 crore through the issuance of long-term green infrastructure bonds, becoming the first bank in India to issue domestic green bonds.
The seven-year Series I bonds were issued through the electronic book platform of the National Stock Exchange of India and carried a competitive coupon of 7.10% per annum. The issue saw strong investor demand, receiving bids worth ₹16,415 crore, more than three times the base issue size of ₹5,000 crore, the PSU bank said in a statement.
The bank had launched the offering with a base issue of ₹5,000 crore along with a greenshoe option of another ₹5,000 crore, both of which were fully subscribed despite prevailing market volatility.
According to the bank, the tight pricing enabled it to achieve a “greenium” – a pricing advantage typically associated with green bonds – reflecting investor confidence in its environmental, social and governance (ESG) roadmap and commitment to sustainable finance.