Bank of Baroda has raised ₹10,000 crore through the issuance of long-term green infrastructure bonds in the domestic market. The fundraising was carried out through Series I bonds with a tenure of 7 years.
The bonds were issued via the electronic book provider (EBP) platform of the National Stock Exchange (NSE) on 4 March 2026. The allotment was completed on 5 March.
The issue attracted bids worth ₹16,415 crore, showing demand from institutional investors. The base issue size was set at ₹5,000 crore, with a greenshoe option of an additional ₹5,000 crore.
Both portions of the issue were fully subscribed. The final cut-off coupon for the bonds was fixed at 7.10% per annum.
The bonds have been issued as senior, rated, listed, unsecured and redeemable instruments. They are non-convertible bonds issued in the nature of debentures.
A total of 10,00,000 bonds were issued, each with a face value of ₹1 lakh. According to the bank’s disclosure, the allotment was made to 15 investors.
The bond issue has been assigned ‘AAA’ ratings with a stable outlook by CARE Ratings and ICRA Limited. These ratings indicate a high level of creditworthiness and low default risk.
Bank of Baroda stated that the pricing shows a “greenium”. This refers to slightly lower borrowing costs that issuers may obtain when raising funds through green-labelled debt compared with conventional bonds.
Proceeds from the bond issue will be used to finance projects that qualify under the bank’s green financing framework and applicable regulatory guidelines.
The funding is expected to support sectors such as renewable energy and other infrastructure projects that meet environmental sustainability criteria.
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As of March 6, 2026, 3:30 pm, Bank of Baroda share price closed at ₹295.00, a 2.27% decrease from the previous closing price.
The ₹10,000 crore issuance represents one of the larger green bond fundraisings by an Indian bank in the domestic market. The funds are intended to be deployed towards projects aligned with green financing standards.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 7, 2026, 10:23 AM IST
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