Now Reading: NaBFID plans $3-4 billion ECB raising, including bonds
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NaBFID plans $3-4 billion ECB raising, including bonds
National Bank for Financing Infrastructure and Development (NaBFID) plans to raise USD 3-4 billion through external commercial borrowings (ECBs), comprising both loans and bonds, managing director Rajkiran Rai G said. The lender…
The Story in Brief
National Bank for Financing Infrastructure and Development (NaBFID) plans to raise USD 3-4 billion through external commercial borrowings (ECBs), comprising both loans and bonds, managing director Rajkiran Rai G said. The lender has already raised USD 850 million at an average pricing of SOFR plus 120 basis points. It aims to issue bonds of USD 500 million to 1 billion by end of September, with a tenure of around 10 years.
A separate ECB transaction of close to USD 1 billion, likely guaranteed by a multilateral institution and with 10-15 year tenure, is expected around October, subject to approvals. NaBFID targets a loan book exceeding Rs 2 lakh crore by March.
The Indian Opinion
Some commentators may paint NaBFID's large dollar borrowing as risky given rupee volatility, but the institution is raising long-term money for critical infrastructure, not speculating. The real test will be whether the interest cost, after hedging, stays below domestic rates. Watch the pricing of the upcoming bond issue and the multilateral-guaranteed deal: if NaBFID can keep spreads tight, it proves India can fund its infrastructure gap without straining the exchequer.
Source: bfsi.economictimes.indiatimes.com
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