India’s First Blue Bond: Sagarmala Finance To Raise ₹6 Billion
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Sagarmala Finance Corporation plans to raise ₹6 billion through India’s first blue bond on 28 September, with 10-year bonds funding maritime and port projects.
Sagarmala Finance Corporation Limited plans to launch India’s first blue bond on 28 September 2026, with the maritime lender looking to raise ₹6 billion through the sale of 10-year bonds, according to a provisional term sheet.
The issue includes a ₹5 billion greenshoe option. The funds will be used for maritime sector lending, greenfield port projects and coastal road network development, with the lender planning to deploy the proceeds within the current financial year.
What Is The Blue Bond?
Sagarmala Finance Corporation, India’s first maritime lender, is preparing for its maiden blue bond issuance next week. Blue bonds are debt instruments used to finance projects linked to sustainable water and marine activities. The areas covered can include clean water, recycling, shipping, sustainable fishing, ocean energy and mapping.
The bonds carry an AA+ rating from ICRA and CARE. The company will invite coupon and commitment bids from investors on Monday as it moves towards the planned issue. SBI Capital Markets has been appointed as the arranger for the issue.
Sagarmala Finance Blue Bond: Key Details
Sagarmala Finance Corporation has also reached out to large insurance companies and provident fund players to participate in the bond sale. The lender’s focus on these institutional investors comes ahead of the planned bidding process.
The proposed bonds will have a 10-year maturity. The ₹6 billion fundraising target includes the greenshoe option, which allows the issuer to raise additional funds as part of the offering.
The planned issue will therefore provide Sagarmala Finance Corporation with funds specifically linked to its maritime lending activities and related infrastructure projects.
Where Will The Blue Bond Proceeds Go?
The proceeds will be directed towards lending in the maritime sector. This includes funding for greenfield port projects and the development of coastal road networks.
L.V.S. Sudhakar Babu, managing director of Sagarmala Finance Corporation, said the funds raised through the issue would be used within the current financial year.
The lender’s planned fundraising also comes as another blue bond issue is being considered by an Indian urban local body. Vadodara Municipal Corporation, an urban local body in Gujarat, is planning to raise around ₹2 billion through a blue bond sale, according to sources.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
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