Pioneering Green Bonds: Bank of Baroda's Milestone in Sustainable Finance

State-owned Bank of Baroda has issued Rs 10,000 crore in green infrastructure bonds, the first domestic issue of its kind in India. The bonds were highly demanded, with bids exceeding three times the base issue. Proceeds will fund environmentally sustainable projects in renewable energy sectors.

In a bold move for sustainable finance, the state-owned Bank of Baroda (BoB) has successfully issued Rs 10,000 crore through long-term green infrastructure bonds. This marks a pioneering step as the first domestically issued green bond by a bank in India.

The issuance attracted bids worth Rs 16,415 crore, more than three times the required amount, underscoring robust investor interest. Priced with a competitive cut-off coupon of 7.10%, the bonds reflect firm investor confidence despite current market volatility.

Proceeds from these bonds are slated for deployment in green projects adhering to BoB's green financing framework, ensuring long-term financial support for renewable energy and sustainable infrastructure ventures.

(With inputs from agencies.)