Union Bank of India has announced it will issue green/sustainable bonds of up to ₹50 billion (~$541.35 million) in one or more tranches.

According to Union Bank’s Business Responsibility & Sustainability Report for 2024-2025, the bank has extended credit facilities of ₹276.68 billion (~$3 billion) to the renewable energy sector as of March 31, 2025.

As of the same date, Union Bank sanctioned ₹7.79 billion (~$84.33 million) in loans under the Union Green Miles program for the purchase of electric two and four-wheelers. With no loan ceiling for four-wheelers, the bank provides up to ₹1 million (~$10,827) for purchasing electric two-wheelers.

Under its Union Solar program, the bank provides loans to businesses to install solar panels. Under this program, businesses can avail of loans ranging from ₹1 million (~$10,827.04) to ₹160 million (~$1.73 million) to install solar panels of capacities between 10 kW and 4 MW.

The bank is also leveraging other renewable energy programs, such as the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan, as well as government initiatives for compressed biogas and solar projects, to achieve its sustainability and green financing goals.

Union Bank has formed a subcommittee within its credit verticals to help the bank transition its credit portfolio toward sustainable/green finance. This will include measuring and reducing credit exposure to polluting industries.

Recently, Powergrid Corporation of India’s board approved raising up to ₹50 billion (~$541.45 million) through an unsecured rupee term loan or line of credit from the Union Bank of India. The loan will provide the company with additional financial resources for its operational and strategic requirements.

Last September, Oyster Green Hybrid Three, a subsidiary of Oyster Renewable Energy, achieved financial closure for its 342 MW wind-solar hybrid project in Madhya Pradesh, securing a loan of ₹18.44 billion (~$207.71 million) from the Union Bank of India with a tenure of approximately 20 years.