Bank of Baroda has successfully allotted ₹10,000 crore Long Term Green Infrastructure Bonds (Series I) at a 7.10% fixed coupon rate, marking India's first domestic green bond issuance by a bank, with 15 institutional investors subscribing via NSE EBP platform on March 4-5, 2026.

Bank of Baroda Raises 10,000 Cr Through Green Bonds – Key Terms

Issued via NSE Electronic Book Platform (EBP) – opened/closed March 4, 2026, allotted March 5.

Why Green Bonds Matter for Investors & India

India Context:

• 1st domestic green bond by Indian bank.
• Funds renewable energy, sustainable construction, water conservation, green urban projects.
• Aligns with India's net-zero goals and green infra capex push.

BoB Financials: CET-I 12.45%, Tier-1 13.10%, CRAR 15.29% (9MFY26) supports 11-13% credit growth target.​

Strengths of Bank of Baroda Green Bonds

• India's first domestic bank green bond – pioneering ESG fixed income opportunity. ​

• Attractive 7.10% coupon for 7-year AAA bank paper in falling rate environment.
• Strong subscription (₹16,415 Cr bids vs ₹10,000 Cr issue) shows institutional confidence.
• PSU bank backing with CRAR 15.29%, low credit risk.​
• ESG alignment qualifies for green bond funds, FPIs, domestic pension money.

Risks of Bank of Baroda Green Bonds

• Interest rate risk – 7-year tenor exposed to RBI rate cuts/cycles affecting price volatility.

• Greenwashing scrutiny – investors must verify actual green project deployment vs framework claims.
• Liquidity risk – large ₹10,000 Cr issue but secondary market trading may be thin initially.
• Prepayment risk – callable structure possible (check term sheet) affecting reinvestment yields.
• Regulatory changes – evolving green bond taxonomy/ESG norms may impact certification/refinancing.