Sagarmala Finance to launch India’s first blue bond on Sept. 28

By Khushi Malhotra MUMBAI, Sept 22 (Reuters) — India's first maritime lender, Sagarmala Finance Corporation, plans to raise funds through the country's maiden blue bond on September 28, its top executive said. The lender aims to raise 6 billion rupees ($62.62 million), including a greenshoe option of 5 billion rupees, through the sale of 10-year bonds, a provisional term sheet showed. Blue bonds are a debt instrument used to finance sustainable water and marine projects, including clean water, recycling, shipping, sustainable fishing, ocean energy and mapping. The proceeds will be used for maritime sector lending, greenfield port projects, funding coastal road network and more, Managing Director L.V.S. Sudhakar Babu told Reuters late on Monday, adding that the funds will be used within the current financial year. SBI Capital markets is the arranger for the issue, rated AA+ by Icra and Care. The company will invite coupon and commitment bids from investors on Monday, Babu said. The lender has also reached out to large insurance and provident fund players to invest in this issue. Vadodara Municipal Corporation, an urban local body from the state of Gujarat, is also planning to raise around two billion rupees through the sale of blue bonds soon, ($1 = 95.8100 Indian rupees) (Reporting by Khushi Malhotra; Editing by Nivedita Bhattacharjee) ((khushi.malhotra@thomsonreuters.com;)