Sagarmala Finance Corporation has withdrawn its Rs 600 crore blue bond issue after investors sought a higher coupon than the company was willing to pay. The issue was pitched as India’s first blue bond.

Blue bonds are debt instruments that raise money for marine and ocean-related projects, such as ports, coastal shipping and sustainable fisheries. The Sagarmala issue was expected to draw strong interest from ESG-focused investors.

According to reports, bids came in at coupon levels above the corporation’s comfort zone, forcing it to pull the issue. The withdrawal shows that pricing remains a key hurdle for new green and blue bond issuers in India.

The Sagarmala programme is a government push to modernise ports and cut logistics costs. Sagarmala Finance is its financing arm for maritime projects.

It is not yet clear when the corporation will return to the market. Market watchers say a re-launch will depend on rate expectations and investor appetite for blue-labelled debt.