NaBFID considers $4.8 billion worth of bond sale to double loan disbursements

Also Read | Adani Group tells investors sale of new overseas bond worth $409 million due next week: Report

NaBFID intends to issue bonds with maturity periods ranging from 10-20 years in the financial year beginning April 1, sources said. The targeted fundraising amount is anticipated to fall within the range of ₹30,000 crore to ₹40,000 crore ( ₹300 billion to ₹400 billion), they added.

Current Performance and Operations

Established in 2022, the state-backed financier has made strides in the current fiscal year, accumulating ₹195.2 billion through two bond issuances. This move aligns NaBFID with other Indian financial entities venturing into bond sales, buoyed by a surge in government expenditure on infrastructure, including roads, ports, and railways.

Also Read | NHAI raises more than ₹16,000 crore in its largest InvIT monetisation round

Notably, NaBFID has already disbursed loans exceeding ₹250 billion since April 2023, one source told the publication.

NaBFID did not respond to queries, Bloomberg said.

Government’s Infrastructure Drive

The central government has significantly ramped up investment in critical infrastructure sectors such as roads, airports, and urban development.

Also Read | At India’s second largest engineering company, gaps emerge in electoral bond funding

Over the past three years, expenditure in these areas has doubled, with an allocation of around ₹11 trillion or equivalent to $133 billion (around ₹11 lakh crore) earmarked for the upcoming fiscal year.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Published: 20 Mar 2024, 06:33 AM IST