The National Bank for Financing Infrastructure and Development (NaBFID) has raised ₹10,000 crore via maiden issuance of listed bonds of 10-year duration at a coupon rate of 7.43 per cent.

The development finance institution’s infrastructure bonds (unsecured non-convertible debt securities) were oversubscribed by approximately 4.7 times (receiving bids aggregating ₹23,629.50 crore), against the base issue of ₹5,000 crore.

The DFI, in a statement, said this is the largest debt issuance by an All India Financial Institution (AIFI).

NaBFID said it has received AAA credit rating from domestic credit rating agencies. It has received in-principle listing approvals from both BSE and NSE, and the bonds are expected to be listed shortly.

Rajkiran Rai G, Managing Director, NaBFID, said, “Infrastructure development is a priority for the nation and access to low-cost funds is imperative to achieve this objective…We are enthused by the support and look forward to continued contribution to the growth of infrastructure in India.”

NaBFID was set up in 2021 by an Act of the Parliament to address the gaps in long-term non-recourse finance for infrastructure development, strengthening the development of bonds and derivatives markets in India, and sustainably boosting the country’s economy.

The entire shareholding of the institution is held by the Central Government, which has invested equity of ₹20,000 crore and provided a grant of ₹5,000 crore. 

The institution, in less than a year of its operations, has disbursed approximately ₹15,000 crore of loans, according to its statement.