Infra financier NaBFID raises ₹10,000 crore in maiden bond issue | Mint
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Business News/ Companies / News/  Infra financier NaBFID raises 10,000 crore in maiden bond issue
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Infra financier NaBFID raises ₹10,000 crore in maiden bond issue

The infrastructure financier said it received bids of ₹23,629.5 crore and the bonds were oversubscribed by about 4.7 times, as against the base issue of ₹5,000 crore

While SBI Capital Markets was the lead advisor, Cyril Amarchand Mangaldas was the legal advisor for the issuance. (iStockphoto)Premium
While SBI Capital Markets was the lead advisor, Cyril Amarchand Mangaldas was the legal advisor for the issuance. (iStockphoto)

MUMBAI : The National Bank for Financing Infrastructure and Development (NaBFID), India’s youngest state-backed infrastructure financier, on Thursday said it has raised 10,000 crore in its maiden bond issue. 

The infrastructure financier said it received bids of 23,629.5 crore and the bonds were oversubscribed by about 4.7 times, as against the base issue of 5,000 crore. NaBFID said in a statement that the unsecured non-convertible debt securities have been issued at an annualized coupon rate of 7.43% for a 10 year-tenure. 

This, it said, is the largest debt issuance by an All India Financial Institution (AIFI). NaBFID has received a AAA-credit rating from domestic credit rating agencies and has received in-principle listing approvals from BSE and NSE, and the bonds are expected to be listed shortly, it said. 

While SBI Capital Markets was the lead advisor, Cyril Amarchand Mangaldas was the legal advisor for the issuance. 

"Infrastructure development is a priority for the nation and access to low-cost funds is imperative to achieve this objective," said

Rajkiran Rai G, managing director, NaBFID.

NaBFID started operations in 2021 with an initial capital infusion of 20,000 crore and an additional grant of 5,000 crore from the government. The grant is meant to subsidize lending rates.

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ABOUT THE AUTHOR
Shayan Ghosh
Shayan Ghosh is a national writer at Mint reporting on traditional banks and shadow banks. He has over a decade of experience in financial journalism. Based in Mint’s Mumbai bureau since 2018, he tracks interest rate movements and its impact on companies and the broader economy. His interests also include the distressed debt market, especially as India’s bankruptcy law attempts recoveries of billions worth of toxic assets.
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Published: 15 Jun 2023, 06:45 PM IST
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