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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