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• Sagarmala Finance Corporation (SFC), the state-owned maritime-focused lender under the Ministry of Ports, Shipping and Waterways, is preparing to launch India’s first blue bond issuance.
• The proposed issue aims to raise up to INR 1,000 crore, including a greenshoe option, to support long-term funding requirements for maritime and coastal infrastructure projects.
• Proceeds are expected to be deployed towards ports, shipbuilding facilities, inland waterways, coastal connectivity and other marine-linked infrastructure developments.
• The initiative marks India’s entry into the blue bond market, a niche segment of sustainable finance focused on ocean and water-related projects.
• The fundraising exercise is also intended to address SFC’s asset-liability mismatch by securing longer-tenure borrowings aligned with its infrastructure lending profile.
Sagarmala Finance Corporation (SFC) is preparing to issue India’s first blue bond as part of its efforts to diversify funding sources for maritime and coastal infrastructure development, according to senior company officials. The proposed issuance, expected during the current financial year, will mark the country’s first dedicated blue bond transaction and expand the scope of sustainable financing beyond conventional green bonds. Advertisement
The state-owned lender plans to raise up to INR 1,000 crore through the bond issue, comprising a base issue of INR 500 crore and a greenshoe option of an additional INR 500 crore. The final launch timeline and pricing structure have not yet been determined, with company officials indicating that the issue will be brought to market once bond yields stabilise and market conditions become more favourable.
Blue bonds are debt instruments designed to finance projects linked to oceans, coastal ecosystems and water-related infrastructure. While green bonds have gained significant traction globally for climate-related investments, blue bonds remain a relatively specialised segment of sustainable finance. According to World Bank data, global blue bond issuances exceeded USD 15 billion by mid-2025. India has not previously issued a blue bond, making the proposed transaction a first for the domestic debt market.
The proceeds from the issue are expected to support lending for projects across the maritime ecosystem, including greenfield and brownfield ports, shipbuilding infrastructure, inland waterways, coastal road networks and last-mile port connectivity. The company has been tasked with financing infrastructure under the broader Sagarmala programme, which seeks to strengthen India’s port-led development strategy and logistics network.
Managing Director L.V.S. Sudhakar Babu indicated that the bond issuance would also help address the lender’s funding structure. SFC’s existing borrowings reportedly have an average tenure of around 3.5 years, whereas the projects it finances generally require funding over significantly longer periods, with average loan tenures of nearly 12 years. The proposed bond issue is therefore expected to improve the alignment between the company’s liabilities and long-term infrastructure lending commitments.
Established under the Ministry of Ports, Shipping and Waterways, Sagarmala Finance received its non-banking financial company (NBFC) licence in 2025 and has since emerged as a specialised lender focused on maritime infrastructure financing. The corporation also administers the Maritime Development Fund and associated interest support mechanisms aimed at encouraging investment in port and shipping infrastructure.
The proposed blue bond issuance comes as the corporation expands its financing activities. SFC has outlined plans to raise as much as INR 10,000 crore during FY2026-27 through a combination of bonds, loans and other funding instruments to support India’s growing maritime infrastructure pipeline.
Source - Reuters
5th Jun, 2025
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