New Delhi, March 5 State-owned Bank of Baroda (BoB) announced on Thursday that it had raised ₹10,000 crore through the issuance of long-term green infrastructure bonds, becoming the first bank in India to issue such an instrument domestically.
The issue attracted overwhelming investor demand, receiving bids totaling ₹16,415 crore, more than three times the base issue size of ₹5,000 crore, BoB said in a statement.
The seven-year bond was placed on the Electronic Debt Bidding platform of NSE with a base issue of ₹5,000 crore and a green shoe option of ₹5,000 crore, it said.
Despite current market volatility, the bank secured a competitive cut-off coupon of 7.10 per cent, reflecting strong investor confidence, it said.
Given the competitive pricing achieved, the bank has realized a "Greenium" from the market, due to its commitment to sustainable and green finance, as well as the strong positioning of its ESG roadmap.
The proceeds from the green infrastructure bonds will be used for eligible green projects in line with the bank's green financing framework and applicable regulatory guidelines, enabling long-term funding of critical sectors such as renewable energy and other environmentally sustainable infrastructure projects, it added.
