India’s first blue bond issue is scheduled for launch on 28 September 2026 by Sagarmala Finance Corporation, a state-owned maritime lender. The proposed issue size is ₹600 crore, with a greenshoe option of ₹500 crore, and the bonds have a tenor of 10 years.
Blue Bonds
Blue bonds are debt instruments in which the proceeds are earmarked for projects linked to oceans, marine ecosystems, water management, and the sustainable blue economy. Such instruments are used in financing activities connected with coastal infrastructure, marine conservation, and water-related public utilities.
Sagarmala Finance Corporation Issue
Sagarmala Finance Corporation plans to use the proceeds for maritime sector lending, greenfield port projects, and coastal road networks within the current financial year. SBI Capital Markets has been appointed as the arranger for the issue, and the bond has received an AA+ rating from Icra and Care.
Municipal Blue Bond Proposal
Vadodara Municipal Corporation is also seeking approvals for a separate ₹200 crore blue bond issue. The proposed funds are intended for a pump house, a water treatment plant, and a clear-water reservoir, which places blue finance within India’s municipal bond market.
Important Facts for Exams
- Blue bonds are a category of sustainable finance instruments linked to water and marine-related projects.
- Green bonds finance environmentally beneficial projects, while blue bonds focus on oceans, coastal systems, and water management.
- Municipal bonds are issued by urban local bodies for public infrastructure projects.
- Icra and Care are credit rating agencies that assign ratings to debt instruments in India.
India’s Sustainable Debt Market
India has used green bonds, municipal bonds, and other labelled debt instruments in its sustainable finance market. The proposed blue bond issues add a specialised segment for maritime and water infrastructure financing.
