Government backed Sagarmala Finance to launch India's 1st blue bonds
Business
Sagarmala Finance Corporation, backed by the government, is set to launch India's first-ever blue bonds in the current fiscal year to raise up to ₹1,000 crore for maritime projects.
The initial round will be ₹500 crore, with an option for another ₹500 crore if needed.
As managing director L V S Sudhakar Babu put it, "This will be a ₹500 crore base issue, with a green shoe option of another ₹500 crore,"
Bonds to fix Sagarmala's tenor mismatch
These blue bonds are designed to help Sagarmala Finance fix a mismatch between how quickly it borrows money (about 3.5 years) and how long its loans run (around 12 years).
With advisors like Trust Capital and AK Capital on board, the plan is also part of a bigger goal: Sagarmala wants to disburse ₹60,205 crore by 2030-31.