Published: 6 March 2026AngelOne News / Business StandardEconomy
Bank of Baroda Raises ₹10,000 Crore via India's First Domestic Green Infrastructure Bonds
Bank of Baroda (BoB) raised ₹10,000 crore through its Series I Long-Term Green Infrastructure Bonds on March 5, 2026, becoming the first Indian bank to issue domestic Green Infrastructure Bonds. The bond issue, carrying a coupon rate of 7.10% and a 7-year maturity period, attracted bids worth ₹16,415 crore — more than 1.6 times the base issue size — reflecting strong institutional investor confidence.
Green Infrastructure Bonds are debt instruments specifically earmarked to finance environmentally sustainable projects such as renewable energy, clean transportation, green buildings, water management, and pollution prevention. This issuance aligns with RBI's evolving sustainable finance framework and India's commitment to achieving net-zero emissions by 2070. Bank of Baroda's initiative is part of India's broader green finance architecture that includes the Sovereign Green Bond framework approved by the Ministry of Finance on November 9, 2022.
For Rajasthan, which has emerged as a solar and wind energy hub with large-scale projects under the Rajasthan Solar Energy Policy 2019 and the Rajasthan Renewable Energy Corporation (RRECL), green bond financing represents a major opportunity to channel institutional capital into clean energy infrastructure across the state.
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Linked questionMedium
Bank of Baroda raised ₹10,000 crore through India's first domestic what type of infrastructure bond?
Explanation · Correct answer ABank of Baroda raised ₹10,000 crore through India's first domestic Green Infrastructure Bond, supporting sustainable development financing.
Frequently asked questions
What is unique about the Green Infrastructure Bonds issued by Bank of Baroda in March 2026?
Bank of Baroda's ₹10,000 crore bond issuance on March 7, 2026 is India's first domestic Green Infrastructure Bond. It carries a 7.10% coupon rate over a 7-year tenure and is classified under SEBI's Green Debt Security framework — distinct from green bonds issued under RBI guidelines.
How was the market response to Bank of Baroda's Green Infrastructure Bond issue?
The issue received strong market demand, attracting ₹16,415 crore in bids against the ₹10,000 crore issue size — an oversubscription of 1.64 times. This strong response signals investor confidence in India's green finance instruments.
For what projects will the proceeds from Bank of Baroda's Green Infrastructure Bonds be used?
The proceeds are earmarked for financing renewable energy projects, sustainable water management, and green transport infrastructure. These align with India's commitments to reduce carbon emissions and achieve net-zero by 2070.
What is the difference between Green Infrastructure Bonds and regular green bonds in India?
Green Infrastructure Bonds are classified under SEBI's Green Debt Security framework specifically for infrastructure financing, whereas regular green bonds follow RBI guidelines. The SEBI classification allows banks to raise long-term capital for green infrastructure projects with specific regulatory benefits.
How does India's Green Infrastructure Bond milestone connect to its net-zero 2070 commitment?
India has committed to achieving net-zero carbon emissions by 2070. Green Infrastructure Bonds provide the long-term capital needed to finance large-scale renewable energy, green transport, and sustainable water projects that are central to achieving this commitment, making Bank of Baroda's issuance a landmark in India's sustainable finance journey.
