New Delhi: State-owned Bank of Baroda (BoB) 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.

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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 percent, 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.

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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.

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