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 Green Bonds – Key Terms
|
Parameter |
Details |
|
Issue Size |
₹10,000 crore (base ₹5,000 Cr + greenshoe ₹5,000 Cr fully tapped) |
|
Coupon Rate |
7.10% fixed p.a. payable annually |
|
Face Value |
₹1 lakh per bond (10,00,000 bonds total) whalesbook+1 |
|
Tenor |
7 years (maturity March 5, 2033) |
|
ISIN |
INE028A08380 |
|
Allottees |
15 institutional investors |
|
Listing |
BSE & NSE (senior, rated, listed, unsecured, redeemable debentures) +1 |
|
Proceeds Use |
Green infrastructure projects (renewable energy, sustainable infra) per BoB Green Financing Framework |
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
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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
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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.
FAQs
1. What is the coupon rate and tenor of Bank of Baroda green infrastructure bonds?
7.10% fixed coupon, 7-year tenor maturing March 5, 2033. Face value ₹1 lakh per bond.
2. How much was raised and how many bonds issued?
₹10,000 crore via 10,00,000 bonds (base ₹5,000 Cr + full ₹5,000 Cr greenshoe). 15 institutional allottees.
3. Are Bank of Baroda green bonds listed?
Yes – senior, rated, listed on BSE & NSE. ISIN: INE028A08380. Issued as non-convertible debentures.
4. What are the green bonds proceeds used for?
Eligible green projects under BoB's Green Financing Framework – renewable energy, sustainable infra, clean energy projects per regulatory guidelines.
5. When was the allotment done and via which platform?
Allotment finalized March 5, 2026 via NSE Electronic Book Platform (EBP). Issue opened/closed March 4, 2026.
6. Is this India's first domestic green bond by a bank?
Yes – Bank of Baroda created history as first Indian bank issuing domestic green infrastructure bonds.
7. What is Bank of Baroda's capital position supporting this bond?
CET-I 12.45%, Tier-1 13.10%, Total CRAR 15.29% (9MFY26), backing 11-13% targeted loan growth.
