The National Bank for Financing Infrastructure and Development (NaBFID) said Tuesday that it has generated Rs 5,000 crore through the issue of listed bonds. The offer attracted an enormous response from investors, with bids totaling Rs 12,287 crore, NaBFID stated in a regulatory filing.
The bonds were oversubscribed six times, with a base offering of Rs 2,000 crore. The unsecured non-convertible debt instruments, rated 'AAA' with a stable outlook, were offered at an annualized coupon rate of 7.43 percent for a 10-year term. This indicates a gap of 26 basis points above the comparable Financial Benchmarks India Pvt Ltd (FBIL) GSec par yield curve, it added. The overall number of bids received was 131, suggesting widespread involvement with a variety of proposals.
The investments came from provident funds, pension funds, insurance firms, banks, and other sectors, demonstrating investor trust across the board, according to the report.
"This offering is especially notable because NaBFID has previously raised long-term bonds successfully. The increased involvement from the investor class demonstrates trust in Indian infrastructure as an asset class," stated NaBFID Managing Director Rajkiran Rai. NaBFID was established in 2021 with the primary goals of solving shortages in long-term non-recourse finance for infrastructure development, improving bond and derivatives markets in India, and sustainably enhancing the country's economy.
