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

Sagarmala Finance Corporation Limited (SMFCL), India’s first maritime lender, plans to raise funds through the country’s maiden blue bond issuance on September 28, its top executive said. The lender aims to raise Rs 600 crore, including a greenshoe option of Rs 500 crore, through the sale of 10-year bonds, according to a provisional term sheet.

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 from this issue will be used for maritime sector lending, greenfield port projects and funding coastal road networks, among other purposes, Managing Director L.V.S. Sudhakar Babu said, adding that the funds will be utilized within the current financial year.

The bonds carry an AA+ rating from ICRA and CARE. SBI Capital Markets has been appointed as the arranger for the issue, and the company will invite coupon and commitment bids from investors on Monday as it moves towards the planned issuance. SMFCL has also reached out to large insurance companies and provident fund players to participate in the bond sale, with its focus on these institutional investors coming ahead of the planned bidding process.

Sagarmala Finance Corporation was inaugurated in June 2025 as India’s first Non-Banking Financial Company (NBFC) in the maritime sector by Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, who described the move as a major milestone aligned with the Maritime Amrit Kaal Vision 2047, aimed at bridging financing gaps for ports, MSMEs, startups and institutions in the sector. The company was also granted an overall borrowing limit of Rs 25,000 crore by its board, with Rs 8,000 crore earmarked for its first financial year of operations.

The planned fundraising 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 separately planning to raise around Rs 200 crore through a blue bond sale.