NaBFID bond issue a big hit
MUMBAI : The National Bank for Financing Infrastructure and Development (NaBFID), India’s youngest state-backed infrastructure financier, on Thursday said it has raised ₹10,000 crore in its maiden bond issue.
The infrastructure financier said it received bids of ₹23,629.5 crore and the bonds were oversubscribed by about 4.7 times, as against the base issue of ₹5,000 crore. NaBFID said in a statement that the unsecured non-convertible debt securities have been issued at an annualized coupon rate of 7.43% for a 10 year-tenure.
This, it said, is the largest debt issuance by an all India financial institution (AIFI). NaBFID has received a AAA-credit rating from domestic credit rating agencies and has received in-principle listing approvals from BSE and NSE, and the bonds are expected to be listed shortly, it said.
While SBI Capital Markets was the lead advisor, Cyril Amarchand Mangaldas was the legal advisor for the issuance.
“Infrastructure development is a priority for the nation and access to low-cost funds is imperative to achieve this objective,” said Rajkiran Rai G, managing director, NaBFID.
The financier started operations in 2021 with an initial capital infusion of ₹20,000 crore and an additional grant of ₹5,000 crore from the government. The grant is meant to subsidize lending rates.
“The demand came from insurance companies, employee pension funds, private and public sector banks and provident funds, including EPFO,” Rai said, referring to state-run Employees Provident Fund Organisation.Merchant bankers said a large state-run insurance company was among the largest investors in the issue, purchasing between ₹20 billion and ₹30 billion.
Reuters added to this story.
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Updated: 15 Jun 2023, 09:23 PM IST
