The National Bank for Financing Infrastructure and Development (NaBFID) achieved a significant milestone by successfully raising INR 10,000 crore through its debut listed bond issuance. The offering received an overwhelming response from investors, with bids reaching INR 23,629.50 crores, emphasizing the robust market demand for infrastructure financing. With an oversubscription of approximately 4.7 times the base issue amount of INR 5,000 crores, NaBFID’s maiden bond issuance showcased the investor community’s confidence in the institution.
The 10-year unsecured non-convertible debt securities were issued at an attractive annualized coupon rate of 7.43 percent, offering investors a compelling opportunity. This landmark bond issuance positions NaBFID as a prominent player among All India Financial Institutions (AIFIs) and sets a new benchmark for financial institutions in India, underlining the vital role they play in driving infrastructure development.
NaBFID, established as a statutory body under the NABFID Act, 2021, focuses on long-term non-recourse infrastructure financing and the deepening of India’s bond market. With the Central Government holding the institution’s entire shareholding and making investments of INR 20,000 crores in equity, alongside a grant of INR 5,000 crores, NaBFID has quickly gained traction since its inception. Notably, within its first year of operations, NaBFID has disbursed approximately INR 15,000 crore in loans, contributing significantly to critical infrastructure projects nationwide.
Accompanied by a prestigious AAA credit rating from domestic credit rating agencies, NaBFID has obtained in-principle listing approvals from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), paving the way for the bonds’ imminent listing and further bolstering investor confidence in the institution.
Head by SBI Capital Markets as the lead advisor, and with legal advisory services provided by Cyril Amarchand Mangaldas, NaBFID’s bond issuance witnessed a seamless and well-executed process, ensuring investor satisfaction and regulatory compliance.
Expressing gratitude for the overwhelming response, Mr. Rajkiran Rai G, Managing Director of NaBFID, conveyed his appreciation, saying, “We are immensely grateful to the investors for the remarkable response received during our inaugural bond issuance. Infrastructure development holds paramount importance for our nation, and affordable access to funds is instrumental in achieving this objective. We extend our heartfelt thanks to the Department of Financial Services, Government of India, RBI, SEBI, and all stakeholders for their unwavering support and guidance. This milestone achievement not only showcases the trust placed in NaBFID but also reinforces our commitment to driving infrastructure growth in India. I would also like to extend my heartfelt congratulations to our team for their exceptional efforts.”
NaBFID’s successful bond issuance not only demonstrates the investor community’s confidence in the institution but also highlights the growing focus on infrastructure development in India. The raised funds will play a pivotal role in financing critical projects, propelling the nation’s progress and fostering sustainable development across various sectors.
