“The Green Infrastructure Bond issue marks a significant milestone for Bank of Baroda and a defining moment for India’s domestic ESG bond market,” said Debadatta Chand, underscoring the importance of this financial initiative.

On March 6, 2026, Bank of Baroda announced that it raised ₹100 billion through the issuance of green infrastructure bonds, aimed at supporting renewable energy and sustainable infrastructure projects. This issuance is noteworthy as it positions the bank as the first Indian bank to issue long-term green infrastructure bonds locally.

The bonds, which will run for seven years, were issued through the National Stock Exchange’s Electronic Book Platform. Investors showed strong interest, with total bids reaching ₹164.15 billion, significantly exceeding the base issue size of ₹50 billion.

Chand further elaborated, “The funds raised through the bond issue will support India’s infrastructure needs and green energy transition goals.” The bank will pay an interest rate of 7.1% per year on these bonds, making them an attractive investment option.

These Series I Long-Term Green Infrastructure Bonds have been assigned ‘AAA’ ratings with a stable outlook by CARE Ratings and ICRA Limited, indicating strong confidence in the bonds’ reliability.

The proceeds from this bond issuance will be directed towards financing eligible green projects under the bank’s green financing framework. This initiative aligns with the growing emphasis on environmental sustainability in investment strategies.

Additionally, Bank of Baroda has introduced the bob Green Hydrogen Financing Scheme, which aims to support green hydrogen production facilities for captive usage, further enhancing its commitment to sustainable energy solutions.

The overwhelming response from investors, with bids worth ₹16,415 crore, reflects a robust demand for green financing options in the Indian market. The bonds’ success is anticipated to pave the way for more such initiatives in the future.

As the green infrastructure bond market continues to evolve, Bank of Baroda’s leadership in this space may inspire other financial institutions to explore similar avenues for funding sustainable projects.

Details remain unconfirmed regarding the potential impact of these bonds on the broader financial landscape in India, but the initial reception indicates a positive trend towards green investments.

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