India’s maritime financing landscape is set for a major milestone as Sagarmala Finance Corporation prepares to issue the country’s first-ever blue bond to support ocean-linked and coastal infrastructure projects.
The state-owned lender plans to raise up to ₹10 billion through the bond issue, including a greenshoe option of ₹5 billion, according to Managing Director L.V.S. Sudhakar Babu. The proposed fundraising marks India’s entry into the niche but growing global blue bond market, which is focused on financing environmentally sustainable marine and water-related projects.
Blue bonds are considered a specialised category of sustainable finance instruments, similar to green bonds, but specifically targeted at projects linked to oceans, ports, waterways and coastal ecosystems. Globally, blue bond issuances had crossed $15 billion by mid-2025, with institutions such as the Bank of China and island nations including Seychelles among early issuers.
Sagarmala intends to use the proceeds for long-term borrowing requirements tied to maritime infrastructure development. The company currently faces an asset-liability mismatch, as its average loan disbursement tenure stands at around 12 years, while its existing term borrowings average only 3.5 years.
The timing of the issue, however, will depend on bond market conditions. India’s benchmark 10-year government bond yield has risen by nearly 35 basis points since the outbreak of the U.S.-Iran conflict, impacting broader debt market activity.
Investment banking firms Trust Capital, AK Capital and Tipsons have been appointed as advisers for the transaction.
Established in 2016 under the Ministry of Ports, Shipping and Waterways, Sagarmala received its non-banking financial company (NBFC) licence in June 2025. The lender is expected to play a key role in financing India’s maritime expansion strategy, including investments in greenfield and brownfield ports, shipbuilding, inland waterways, coastal roads and port connectivity projects.
The company is also targeting up to ₹100 billion in fundraising during FY2027 to support the country’s maritime ecosystem. In parallel, it manages the government-backed ₹250 billion Maritime Development Fund, which includes a ₹50 billion Interest Incentivisation Fund designed to provide interest subsidies for maritime sector borrowers.
To support future expansion and maintain a healthy balance sheet, Sagarmala is additionally seeking a ₹20 billion equity infusion from the Indian government.
