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NaBFID  to raise Rs 5,000 crore via bonds in Q1FY24

BNE News Desk , July 2, 2024
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New Delhi:The National Bank for Financing Infrastructure and Development (NaBFID) announced on Tuesday that it has generated Rs 5,000 crore through the issuance of listed bonds in New Delhi.

According to a regulatory filing by NaBFID, investors showed strong interest in the issue with bids totaling Rs 12,287 crore.The demand for bonds exceeded the base issue of Rs 2,000 crore by a factor of 6.The unsecured non-convertible debt securities, rated 'AAA' with a stable outlook, have been released with an annual coupon rate of 7.43 percent for a 10-year period.

It was reported that there was a 26 basis points difference over the FBIL GSec par yield curve, with a total of 131 bids received, showing diverse participation.
It was mentioned that the investors included various types of institutions such as provident funds, pension funds, insurance companies, and banks, showing trust across different investor segments.

This release is equally important because NaBFID has been consistently successful in obtaining long-term bonds. NaBFID Managing Director, Rajkiran Rai stated that the increased involvement of investors across different classes demonstrates confidence in Indian infrastructure as an asset class.

Established in 2021, NaBFID aims to fill the void in long-term non-recourse finance for infrastructure development, enhance India's bonds and derivatives markets, and promote sustainable economic growth.