NaBFID raises ₹10,000 crore through listed bonds

The National Bank for Infrastructure Finance and Development (NaBFID) has raised Rs 10,000 crore via the first issuance of 10-year listed bonds at a coupon rate of 7.43 per cent.

DFC Infrastructure Bonds (Unsecured Non-Convertible Debt Notes) were oversubscribed by around 4.7 times (collective bid received INR 23,629.50 crore), For the underlying issue of Rs 5,000 crore.

This is the largest debt issuance by an All India Financial Institution (AIFI), DFI said in a statement.

NaBFID said it received an AAA credit rating from local credit rating agencies. It has received listing approvals in principle from both the BSE and the NSE, and the bond is expected to be listed soon.

Rajkiran Rai G, Managing Director, NaBFID said, “Developing infrastructure is a priority for the nation and access to low-cost funds is essential to achieve this goal… We are excited about the support and look forward to continuing to contribute to the growth of infrastructure in India.”

NaBFID was created in 2021 by an Act of Parliament to address loopholes in long-term non-recourse financing for infrastructure development, promote the development of bond and derivatives markets in India, and sustainably boost the country’s economy.

Entire ownership of the enterprise is held by the central government, which has invested equity of Rs. 20,000 crore and provided an endowment of Rs. 5,000 crore.

The foundation, in less than a year of its operations, has disbursed nearly Rs 15,000 crore in loans, according to its statement.