Bank of Baroda's successful green bond issuance is spurring India's state-run lenders to plan fresh capital raises. BoB locked in a 7.10% coupon on a ten-thousand-crore, seven-year green infrastructure bond, attracting strong demand from major institutional investors. Union Bank of India is looking to raise about ten-thousand crore, while State Bank of India may issue around seventy-five hundred crore. Punjab National Bank and Indian Bank are also expected to tap the market. The strong pricing reflects investor appetite despite expectations that India is nearing the end of its rate-cut cycle. BoB's spread of roughly forty basis points over benchmark government securities was notably tight compared to typical seventy to one hundred basis point spreads.
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