National Bank for Financing Infrastructure and Development (NaBFID) has raised INR 10,000 crore by issuance of listed bonds in its maiden issuance on Thursday. The issue received overwhelming response from the investors with bids of INR 23,629.50 crores. The infrastructure bonds were oversubscribed by approximately 4.7 times, against the base issue of INR 5,000 crores.
The unsecured non-convertible debt securities have been issued at an annualized coupon rate of 7.43 per cent for a 10 year-tenure. This is the largest debt issuance by an All India Financial Institution (AIFI) and is an indicator of the trust investors have placed in NaBFID. This deal sets a new milestone for bond issuances by financial institutions in India.
NABFID is a statutory body set up pursuant to the NABFID, Act, 2021 with the mandate of development of long-term non-recourse infrastructure financing in India and deepening of the bond market. The entire shareholding of the institution is held by the Central Government, which has invested equity of INR 20,000 crores and provided a grant of INR 5,000 crores. The institution, in less than its 1 year of its operations, has disbursed approximately INR 15,000 crore of loans.
NaBFID has received AAA credit rating from domestic credit rating agencies. NABFID has received in-principle listing approvals from both BSE and NSE, and the bonds are expected to be listed shortly.
SBI Capital Markets was lead advisor and Cyril Amarchand Mangaldas was the legal advisors for the issuance.
Mr. Rajkiran Rai G, Managing Director, NaBFID, said, “We are grateful to the investors for the overwhelming response received for our debut issuance. Infrastructure development is a priority for the nation and access to low-cost funds is imperative to achieve this objective. We are thankful for the support and guidance received from the Department of Financial Services, Government of India, RBI and SEBI. We are enthused by the support and look forward to continued contribution to the growth of infrastructure in India. I would also like to extend my congratulations to the team for this milestone achievement.”