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India is on the verge of a pivotal moment in sustainable finance. Sagarmala Finance Corporation, a Government of India Enterprise under the Ministry of Ports, Shipping, and Waterways, is all set to issue India’s first-ever blue bond: a debt instrument aimed at funding water-related projects.
The company aims to raise up to ₹1,000 crore ($105.08 million), including a greenshoe option of ₹500 crore, Managing Director L.V.S. Sudhakar Babu told Reuters. The bond is expected to have a 10-year term and is supported by Trust Investment Advisors, A.K. Capital Services, and Tipsons Consultancy Services as the financial advisors.
Sagarmala Finance’s ₹1,000 Crore Blue Bond: What It Funds and Why
Sagarmala’s existing term loans have an average tenure of 3.5 years, while the loans it disburses run for about 12 years on average, creating an asset-liability discrepancy that a long-term blue bond could help with.
“This will happen when the market is conducive and yields stabilise,” Babu said. “We’re the dedicated financier for the blue economy, aligning with the Amrit Kaal Vision 2047”, he added.
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Established in 2016 under India’s Ministry of Ports, Shipping and Waterways, Sagarmala received its NBFC licence in June 2025. At the inauguration, Union Minister Sarbananda Sonowal called it “a major milestone in India’s maritime journey,” adding that it would “bridge financing gaps and offer sector-specific financial solutions, empowering ports, MSMEs, startups, and institutions.”
What India’s First Blue Bond Means for ESG Investors
Globally, blue bonds remain a niche but growing corner of debt instruments. Just over $15 billion in blue bonds has been issued worldwide by mid-2025, per World Bank data. Asia’s first blue bond was issued by the Bank of China in 2020.
A successful deal could pave the way for other Indian issuers and signal that the world’s most populous nation is ready to chart its own course in ocean-focused markets.
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First Blue Bond FAQs
Sagarmala Finance Corporation plans to raise up to ₹1,000 crore, which includes a base issue size along with a greenshoe option of ₹500 crore.
The 10-year blue bond helps solve an asset-liability discrepancy. Sagarmala’s existing term loans have an average tenure of 3.5 years, while the loans it disburses to maritime projects run for an average of 12 years.
The issuance is supported by Trust Investment Advisors, A.K. Capital Services, and Tipsons Consultancy Services as the designated financial advisors.
