State-owned Bank of Baroda on Thursday said it has raised Rs 10,000 crore through the issuance of long-term green infrastructure bonds, becoming the first bank in India to issue such an instrument domestically.
The issue garnered overwhelming investor demand, receiving bids aggregating Rs 16,415 crore, over three times the base issue size of Rs 5,000 crore, BoB said in a statement.
The seven-year bond was placed on the Electronic Debt Bidding platform of NSE with base issue of Rs 5,000 crore and a green shoe option of Rs 5,000 crore, it said.
Despite current market volatility, the bank secured a competitive cut-off coupon of 7.10%, reflecting strong investor confidence, it said.
Given the tight pricing achieved, the bank has realised a “Greenium” from the market, due to its commitment to sustainable and green finance, as well as the strong positioning of its ESG roadmap.
The proceeds from the green infrastructure bonds will be deployed towards eligible green projects in line with the bank’s green financing framework and applicable regulatory guidelines, enabling long-term funding of critical sectors such as renewable energy and other environmentally sustainable infrastructure projects, it added.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence,
Continuous LIVE TV,
Sharp Market Insights,
Practical Personal Finance Advice and
Latest Stories — On NDTV Profit.
