Bank of Baroda Raises ₹10,000 Crore Through India’s First Domestic Green Infrastructure Bonds

Mumbai, March 07, 2026: Bank of Baroda has raised ₹10,000 crore through the issuance of Series I Long-Term Green Infrastructure Bonds, becoming the first bank in India to issue green bonds in the domestic market. The move marks a significant development for India’s ESG-linked financing landscape and aims to support environmentally sustainable infrastructure projects.

The bond issue received strong investor interest, attracting bids worth ₹16,415 crore—more than three times the base issue size of ₹5,000 crore. The bank exercised a greenshoe option of ₹5,000 crore, taking the total issue size to ₹10,000 crore.

The seven-year bond was issued through the Electronic Book Provider (EBP) platform of the National Stock Exchange (NSE). Despite prevailing market volatility, Bank of Baroda secured a competitive cut-off coupon of 7.10% per annum, reflecting investor confidence in the bank’s financial position and sustainability roadmap.

The bank noted that the pricing enabled it to achieve a “greenium,” a term used in the bond market to indicate favourable pricing due to strong demand for green and sustainable financial instruments.

The funds raised through the bonds will be deployed toward eligible green projects in accordance with the bank’s Green Financing Framework and regulatory guidelines. These projects are expected to include renewable energy initiatives and other environmentally sustainable infrastructure developments that contribute to India’s transition toward a low-carbon economy.

Dr. Debadatta Chand, Managing Director & CEO, Bank of Baroda, said, “The Green Infrastructure Bond issue marks a significant milestone for Bank of Baroda and a defining moment for India’s domestic ESG bond market. Raising ₹10,000 crore with such strong demand and attractive pricing demonstrates the deep confidence investors have in the Bank and in our commitment to green and sustainable growth as part of our broader ESG journey. These funds will support India’s infrastructure needs, enabling a transition towards a cleaner, greener and more sustainable future.”

The bonds have received AAA ratings with a Stable outlook from rating agencies CARE Ratings and ICRA, indicating a high degree of creditworthiness.

With this issuance, Bank of Baroda aims to strengthen its sustainable financing initiatives while contributing to the growth of India’s domestic green bond market and supporting infrastructure projects aligned with environmental sustainability goals.