NaBFID receives 4.7x bids for Rs 10,000 Cr debut debt sale
In a remarkable achievement, the National Bank for Financing Infrastructure and Development (NaBFID) successfully completed its first debt issuance, raising Rs 10,000 crore. The response from investors was overwhelming, with bids totaling Rs 23,629.50 crore, surpassing the base issue by 4.7 times. This significant oversubscription highlights the market’s confidence in NaBFID’s potential.
Unsecured non-convertible debt instruments with a ten-year term and a 7.43 percent annualised coupon rate were issued by NaBFID. This debt offering not only establishes a new record for NaBFID but also for financial institution bond issuances. The managing director of NaBFID, Rajkiran Rai G, expressed satisfaction for the first public debt issue’s success and reaffirmed the company’s dedication to promoting infrastructure development.
The government has already invested Rs 20,000 crore in equity and provided an additional grant of Rs 5,000 crore to NaBFID. With just one year of operations, NaBFID has already disbursed approximately Rs 15,000 crore in infrastructure loans, showcasing its rapid progress in the sector.
The ten-year money bonds will be listed on both the BSE and NSE, providing investors with a valuable investment opportunity. SBI Caps acted as the lead advisor for the issue, while Cyril Amarchand Mangaldas served as the legal advisor, ensuring a smooth and compliant process.
NaBFID’s successful debut debt sale not only demonstrates its robust financial position but also reinforces its mission to drive infrastructure development in the country.
About NaBFID:
National Bank for Financing Infrastructure and Development (NABFID) was established as the primary institution for infrastructure financing in the country through the NABFID Act, 2021. This act was passed by the Parliament on March 28, 2021.
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