Bank of Baroda (BoB) raises ₹10,000 crore via 7-year green infra bonds at 7.10% coupon.

Key facts

• Bank of Baroda (BoB) issued its first 7-year green infra bond, raising ₹10,000 crore at a coupon of 7.10%.
• The issue received bids totalling ₹16,000 crore, allowing full utilisation of the ₹5,000 crore green-shoe option over the base ₹5,000 crore target.
• Proceeds will finance renewable energy projects—wind, solar, hydro, bioenergy—and energy-efficient infrastructure projects.
• The bonds were subscribed by domestic institutional investors including life insurance companies, pension and provident funds.
• Rating agencies Care and ICRA assigned AAA rating to the bond issue.
• Small Industries Development Bank of India (SIDBI) withdrew its proposed ₹8,000 crore NCD issue (₹2,000 crore base plus ₹6,000 crore green-shoe) due to investor-demand mismatch for the 3-year 4-month tenor.
• SIDBI’s withdrawal is rare and highlights weaker appetite for short-tenor AAA paper at expected fine pricing versus long-duration bonds.