The National Bank for Financing Infrastructure and Development raised nearly Rs 3,911 crore on Monday by selling a 20-year bond at a coupon rate of 7.36%, according to debt merchant bankers.
The issue, with a base size of Rs 1,000 crore, carried a greenshoe option that allows the company to accept additional Rs 4,000 crore worth of bids in the event of oversubscription.
The infrastructure financing bank's 20-year bond issue, rated 'AAA' by Crisil Ratings, garnered demand from long-term investors such as Employees' Provident Fund Organisation, pension funds, and a large insurance company, three merchant bankers told NDTV Profit on the condition of anonymity.
The 20-year bond received 108 bids worth Rs 10,310.8 crore in the range of 7.24–7.58%, according to a bid book accessed by NDTV Profit.
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NaBFID raised Rs 5,000 crore last month through the fully subscribed issuance of 10-year bonds at a coupon of 7.43%.
In the financial year ended March, the company raised a total of Rs 19,516 crore through two bond issuances, one maturing in 10 years and the other in 15 years, at a coupon of 7.43% and 7.65%, respectively.
NaBFID was incorporated on April 19, 2021, as a development financial institution regulated by the Reserve Bank of India. It is regulated and supervised as an All India Financial Institution and has been primarily set up to support long-term infrastructure financing in India, including the development of bonds and derivatives markets necessary for infrastructure financing.
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