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Business News/ Markets / Infrastructure financial institutions, NABFID, PSUs, and others aiming to collect 30,000 crore through bond sale
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Infrastructure financial institutions, NABFID, PSUs, and others aiming to collect ₹30,000 crore through bond sale

While NABFID is planning a bond sale of around ₹10,000 crore, the Delhi-Mumbai Expressway is mulling to collect worth ₹3,000 crore.

In a bid to clean up election funding, the government had in January introduced electoral bonds that can be bought from specified branches of State Bank of India and used to donate money to political parties. Photo: iStockphotoPremium
In a bid to clean up election funding, the government had in January introduced electoral bonds that can be bought from specified branches of State Bank of India and used to donate money to political parties. Photo: iStockphoto

The National Bank of Financing Infrastructure and Development (NABFID), along with Public Sector Banks (PSUs) and Indian Infrastructure Financiers, is aiming to generate funds worth 30,000 ahead of elections, according to a report by Economic Times.

While NABFID is planning a bond sale of around 10,000 crore, the Delhi-Mumbai Expressway is mulling to collect worth 3,000 crore.

LiveMint earlier reported that the Bank of Baroda, in a notice issued to exchanges on November 18, informed that its capital raising committee had approved an amount of up to 15,000 crore, comprising tier-II debt bonds up to 5,000 crore and infrastructure bonds up to 10,000 crore.

Also Read | Bank of Baroda to raise up to 15,000 crore through infrastructure, tier-II debt bonds. Details here

"Capital Raising Committee of our bank in its meeting held today i.e. 18.11.2023, has approved the issuance of 2,000 crore Tier II/sub-debt bond with the greenshoe option to raise another 3,000 crore totalling 5,000 crore (10 years with call option at the end of 5 years)," the filing stated.

State-owned Canara Bank is reportedly planning to issue bonds worth 5,000 crore on November 24. Market experts suggest that these bonds, categorised as infrastructure bonds, will have a maturity period of 10 years, concluding on November 29, 2033, according to a LiveMint report.

Also Read | Canara Bank to raise over 5,000 crore through 10-year bonds: Report

"NABFID's bond sale will most likely occur around mid-December, and the security will be of 15-year maturity. After their debut bond sale worth 10,000 crore in June, which was through 10-year bonds, they have decided to opt for a longer maturity paper this time as bonds in the long-term infrastructure space are seeing firm demand from investors," a source said, as quoted by ET.

Earlier this year, in July, India's largest lender, State Bank of India (SBI), raised 10,000 crore after issuing 15-year infrastructure bonds at the coupon rate of 7.54 per cent. The bank said that the proceeds would be directed towards bolstering long-term resources for funding critical infrastructure projects and supporting the affordable housing segment.

Also Read | SBI raises 10,000 crore through 15-year infrastructure bonds at coupon rate of 7.54%

The Delhi-Mumbai Expressway has secured a 'letter of comfort' from the National Highways Authority of India for its bond sale of about 3000 crore, the ET report further added.

"Their bonds will likely be of 15-year maturity with a base size of 1,000 crore and a green shoe option of 2,000 crore. The issue will likely be carried out at the end of November or early December," a source said, as quoted by ET.

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Published: 24 Nov 2023, 02:52 PM IST
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