India's first blue bond launches September 28: What is it?
What's the story
India's first blue bond will be issued on September 28 by Sagarmala Finance Corporation, the country's first maritime lender. The company hopes to raise ₹6 billion through this initiative, which includes a greenshoe (over-allotment) option of ₹5 billion. The funds raised will be used for various maritime sector projects such as port development and coastal road networks.
Financial instrument
Understanding blue bonds and their significance
A blue bond is a debt instrument issued by governments, banks, or companies to fund marine conservation, sustainable fisheries, wastewater management, and ocean protection.
These can range from clean water initiatives, recycling programs, shipping services, sustainable fishing practices to ocean energy and mapping activities.
The maiden bond issue by Sagarmala Finance Corporation will be arranged by SBI Capital Markets, which is the arranger for the issue, rated AA+ by Icra and Care.
Utilization plan
Funds to be utilized in current financial year
The Managing Director of Sagarmala Finance Corporation, L.V.S. Sudhakar Babu, has confirmed that the funds raised through this bond issue will be utilized within the current financial year.
He also revealed that the company has approached major insurance and provident fund players to invest in this issue.
This shows a broad interest in India's first blue bond and its potential impact on maritime sector development.