Bank of Baroda has raised ₹100 billion (~$1.1 billion) through green infrastructure bonds to support long-term funding for renewable energy and sustainable infrastructure projects.

The Series I Long-Term Green Infrastructure Bonds received total bids of ₹164.15 billion (~$1.8 billion), which was over three times the base issue size of ₹50 billion (~$545.65 million). The bank had offered a greenshoe option of an additional ₹50 billion (~$545.65 million).

The bonds will run for seven years and were issued through the National Stock Exchange’s Electronic Book Platform. The bank will pay an interest of 7.1% per year on the bonds.

Bank of Baroda said the proceeds from the green infrastructure bonds will be deployed to eligible green projects that align with its Green Financing Framework and applicable regulatory guidelines. Debadatta Chand, Managing Director and CEO at Bank of Baroda, stated that the funds raised through the bond issue will support India’s infrastructure needs and green energy transition goals.

According to Bank of Baroda’s Business Responsibility and Sustainability Report 2024-2025, the bank introduced the bob Green Hydrogen Financing Scheme to support green hydrogen production facilities for captive usage.

It also introduced the bob Earth Green Term Deposit program, mobilizing resources for green activities, raising approximately ₹10.83 billion (~$118,16 million) as on March 31, 2025, under this program.

Bank of Baroda said it also supports initiatives such as the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan, Green Energy Corridor, and PM Surya Ghar: Muft Bijli Yojana.

In 2023, the Reserve Bank of India (RBI) issued a framework for financial institutions to offer ‘Green Deposits’ to customers, address ‘greenwashing’ concerns, and help augment the flow of credit to green activities and projects. The framework, which aims to foster the growth of the green finance ecosystem in the country, applies to all regulated entities, such as scheduled commercial banks and deposit-taking non-banking financial companies.

According to the framework, banks must allocate proceeds from green deposits to renewable energy projects covering solar, wind, biomass, and hydropower, with integrated energy generation and storage.

In 2025, the RBI increased the lending limit for the renewable energy sector in its guidelines for priority sector lending. The limit of bank loans was increased to ₹350 million (~$4.08 million) for renewable energy-based generators.