India's first blue bond set for launch next week, official says
The lender plans to raise 600 crore from 10-year bonds, including a 500 crore greenshoe option, according to a provisional term sheet
India's first maritime lender, Sagarmala Finance Corporation, is set to launch its maiden blue bond next week, according to the company's top executive. The lender intends to raise 600 crore ($62.62 million) through the sale of 10-year bonds, with a greenshoe option of 500 crore, as per a provisional term sheet. Blue bonds are debt instruments designed to finance sustainable water and marine projects, such as clean water initiatives, recycling, shipping, sustainable fishing, ocean energy, and mapping.
The funds raised will be utilized for maritime sector lending, greenfield port projects, coastal road network funding, and more. Managing Director L.V.S. Sudhakar Babu informed Reuters that these proceeds will be allocated within the current financial year. SBI Capital markets is handling the arranger for the issue, which holds an AA+ rating from Icra and Care.
The company will accept coupon and commitment bids from investors on Monday. Sagarmala Finance Corporation has also approached large insurance and provident fund players to participate in this issue. Additionally, Vadodara Municipal Corporation, an urban local body from Gujarat, is also planning to raise around 200 crore through the sale of blue bonds in the near future.
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