NaBFID Raises Record Rs 5,000 Crore Via Oversubscribed Bonds

The National Bank for Financing Infrastructure and Development (NaBFID) raised Rs 5,000 crore by issuing listed bonds, oversubscribed six times against the base issue of Rs 2,000 crore. The 'AAA' rated bonds received bids totaling Rs 12,287 crore, reflecting widespread investor confidence in Indian infrastructure.

The National Bank for Financing Infrastructure and Development (NaBFID) announced on Tuesday its successful raising of Rs 5,000 crore through the issuance of listed bonds.

A regulatory filing revealed that the bond issuance, which saw bids amassing Rs 12,287 crore, was oversubscribed six times against the initial base issue of Rs 2,000 crore.

The unsecured, non-convertible, 'AAA' rated bonds, with a stable outlook, were issued at an annualized coupon rate of 7.43 percent for a tenure of ten years, representing a spread of 26 basis points over the FBIL GSec par yield curve. The total number of 131 bids showcased widespread participation across varied investor segments, including provident funds, pension funds, insurance companies, and banks.

NaBFID's Managing Director, Rajkiran Rai, highlighted the success in raising long-duration bonds and noted the growing confidence in Indian infrastructure as an investment asset class. Established in 2021, NaBFID aims to address gaps in long-term finance for infrastructure, bolster the bonds and derivatives markets, and drive sustainable economic growth in India.