India's first blue bond, targeting ₹600 crore for sustainable maritime projects, is set to launch on September 28. According to reports from The Hindu BusinessLine, Business Standard, and Economic Times, Sagarmala Finance Corporation, the country's first maritime lender, will raise funds through this maiden blue bond issue. The lender plans to issue 10-year bonds with a greenshoe option of ₹500 crore, bringing the total potential raise to ₹1,100 crore. As per Reuters, the company's top executive confirmed the launch timeline and detailed structure of the offering.
The blue bond issue is being arranged by SBI Capital Markets and carries AA+ ratings from both Icra and Care. As reported by The Hindu BusinessLine, Business Standard, and Economic Times, the company will invite coupon and commitment bids from investors on Monday, with the funds designated for use within the current financial year. The bonds will be used to finance sustainable water and marine projects including clean water, recycling, shipping, sustainable fishing, ocean energy and mapping.
According to The Hindu BusinessLine, Business Standard, and Economic Times, the proceeds from the blue bond will be utilized for maritime sector lending, greenfield port projects, funding coastal road network and more. Managing Director L.V.S. Sudhakar Babu confirmed that the funds will be deployed within the current financial year. The company has also reached out to large insurance and provident fund players to participate in this sustainable financing initiative, as reported by Reuters.
As reported by The Hindu BusinessLine, Business Standard, Economic Times, and Reuters, Vadodara Municipal Corporation, an urban local body from Gujarat, is also planning to raise around ₹200 crore through the sale of blue bonds. This indicates growing interest in sustainable maritime financing across different sectors of the Indian market. The blue bond represents a significant step in India's development of specialized debt instruments for environmental and maritime projects.
