Rai said that if there is a chance, NaBFID also funds municipal corporations.
NaBFID Plans $1 Billion
According to Managing Director Rajkiran Rai, the National Bank for Financing Infrastructure and Development (NaBFID) plans to use a mix of dollar-denominated bonds and external commercial borrowings (ECB) to raise up to $1 billion for the remainder of the current fiscal year.
While speaking on the sidelines of the FIBAC 2025 event, Rai said, “We are looking at raising up to $1 billion, but it may be partly bonds and partial ECB, we have not yet crystallized, based on the cost we will decide.”
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NaBFID Borrowing Costs Rise
According to the state-run infrastructure lender, the company’s approval limits are up to Rs 2.4 lakh crore, with disbursements falling between Rs 80,000 and Rs 90,000 crore after that. “For example, we have previously disclosed our data and the amount we want to borrow, but actual borrowings will depend on when the disbursements occur.”
He continued by saying that the cost of borrowing money has gone up by 10 to 15 basis points (Bps) for the NaBFID and is increasing domestically.
NaBFID Supports Municipal Corporations
With the announcement of the GST revisions, the yield on domestic money market instruments began to rise, indicating that the government would likely borrow more money via government securities.
On addition, the tariffs are increasing the cost of borrowing on the online market.
Rai said that if there is a chance, NaBFID also funds municipal corporations.
“Municipal companies need a lot of credit, yet they have a limited ability to accept and use credit. Wherever there is an opportunity, we are providing funding,” he said.