NaBFID considers $4.8 billion worth of bond sale to double loan disbursements

NaBFID is likely to sell bonds with tenors spanning from 10 to 20 years in the financial year starting April 1, sources told Bloomberg.

Livemint (with inputs from Bloomberg)
Updated20 Mar 2024, 06:47 AM IST
NaBFID joins other Indian institutions in selling bonds amid a massive increase in government spending on roads, ports and railways.
NaBFID joins other Indian institutions in selling bonds amid a massive increase in government spending on roads, ports and railways. (iStockphoto)

National Bank for Financing Infrastructure and Development (NaBFID) plans to raise up to $4.8 billion (around 40,000 crore) in local currency bonds, Bloomberg reported citing sources. The state-backed lender aims to more than double its loan disbursement, it added.

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NaBFID intends to issue bonds with maturity periods ranging from 10-20 years in the financial year beginning April 1, sources said. The targeted fundraising amount is anticipated to fall within the range of 30,000 crore to 40,000 crore ( 300 billion to 400 billion), they added.

Current Performance and Operations

Established in 2022, the state-backed financier has made strides in the current fiscal year, accumulating 195.2 billion through two bond issuances. This move aligns NaBFID with other Indian financial entities venturing into bond sales, buoyed by a surge in government expenditure on infrastructure, including roads, ports, and railways.

Also Read | NHAI raises more than 16,000 crore in its largest InvIT monetisation round

Notably, NaBFID has already disbursed loans exceeding 250 billion since April 2023, one source told the publication.

NaBFID did not respond to queries, Bloomberg said.

Government's Infrastructure Drive

The central government has significantly ramped up investment in critical infrastructure sectors such as roads, airports, and urban development.

Also Read | At India's second largest engineering company, gaps emerge in electoral bond funding

Over the past three years, expenditure in these areas has doubled, with an allocation of around 11 trillion or equivalent to $133 billion (around 11 lakh crore) earmarked for the upcoming fiscal year.

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First Published:20 Mar 2024, 06:47 AM IST
HomeCompaniesNewsNaBFID considers $4.8 billion worth of bond sale to double loan disbursements

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