Funding
NaBFID’s Bond Issue Surges to Rs 5,000 Crore, Oversubscribed by 6 Times
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Overwhelming Investor Response
NaBFID’s latest bond issue saw an incredible oversubscription rate of 6 times, with bids totaling Rs 12,287 crore against a base issue of Rs 2,000 crore. This response underscores the strong market appetite for high-quality debt securities.
Key Details of the Bond Issue
- Coupon Rate: The unsecured non-convertible bonds are rated ‘AAA’ with a stable outlook, offering an annualized coupon rate of 7.43% for a 10-year tenure.
- Yield Spread: The bonds present a spread of 26 basis points over the corresponding Financial Benchmarks India Pvt Ltd (FBIL) GSec par yield curve.
- Investor Participation: A total of 131 bids were received, indicating a broad and heterogeneous investor base, including provident funds, pension funds, insurance companies, and banks.
Confidence in Indian Infrastructure
NaBFID Managing Director Rajkiran Rai highlighted the significance of the successful bond issuance, emphasizing the confidence investors have in Indian infrastructure as a reliable asset class. This issuance follows NaBFID’s ongoing efforts to raise long-duration bonds, further solidifying trust across diverse investor segments.
Strategic Objectives
Established in 2021, NaBFID aims to bridge the gaps in long-term non-recourse finance for infrastructure development. The institution also focuses on enhancing the development of bond and derivatives markets in India, contributing to the sustainable growth of the national economy.
- What are your thoughts on NaBFID’s successful bond issuance and its impact on infrastructure financing?
- How do you view the role of long-term bonds in boosting India’s economic development?
- What factors do you think contributed to the high investor confidence in NaBFID’s bonds?
- Share your opinions on the future of infrastructure investment in India.