Sagarmala Finance Corporation's Blue Bonds Initiative
Sagarmala Finance Corporation is set to introduce India’s first blue bonds within the current fiscal year, as announced by its Managing Director, L V S Sudhakar Babu.
Details of the Bond Issue
- The bond issue aims to raise up to ₹1,000 crore.
- It comprises a ₹500 crore base issue and a green shoe option of an additional ₹500 crore.
- Advisors for the issue include Trust Capital, AK Capital, and Tipsons.
Purpose and Target Audience
- The blue bonds are designed for investors interested in maritime projects.
Current Financial Environment
- The benchmark 10-year government bond yield was recorded at 6.996% as of the latest data.
Sagarmala Finance Corporation Ltd (SMFCL) Goals
- SMFCL is India's first maritime-focused non-banking finance company.
- The goal is to achieve cumulative disbursements of ₹60,205 crore by the fiscal year 2030-31.
- The company has a mandate to raise up to ₹25,000 crore.
Financial Strategy
- The bond issuance will address the asset-liability mismatch faced by the lender.
- Current borrowings have an average repayment period of approximately 3.5 years.
- The loan assets typically have a gestation period of around 12 years.
