Seven-Year ‘AAA’ Rated Bonds to Support Sustainable Infrastructure Financing
State-owned lender Bank of Baroda is set to raise up to ₹10,000 crore through the issuance of green infrastructure bonds on March 4, marking a significant push towards sustainable financing.
According to market sources, the base issue size has been fixed at ₹5,000 crore, with a green shoe option allowing the bank to retain oversubscription of up to an additional ₹5,000 crore. This could take the total issue size to ₹10,000 crore, depending on investor demand.
The bonds will have a tenor of seven years and are scheduled to mature on March 5, 2033. The pay-in and allotment date is March 5, 2026, when the exchange of funds and securities between the issuer and investors will take place.
Bidding for the issue will be conducted between 11:00 am and 12:00 pm on March 4 via the Electronic Book Provider (EBP) platform of the National Stock Exchange of India. The bonds will be allocated on a uniform yield basis through a closed bidding process.
The proposed bonds have received the highest credit rating of ‘AAA’ with a ‘Stable’ outlook from CARE Ratings and ICRA, indicating strong creditworthiness and low risk of default.
The bonds will carry annual interest payments, with a minimum application size of ₹1 lakh and in multiples of ₹1 lakh thereafter.
The green infrastructure bonds are expected to channel funds into environmentally sustainable projects, aligning with broader climate goals and the growing focus on responsible banking. The fundraising move underlines Bank of Baroda’s continued efforts to diversify its funding base while supporting green and infrastructure development initiatives across the country.
Bank of Baroda to Raise Up to ₹10,000 Crore Through Green Infra Bonds on March 4
