NABFID and PSUs Gear Up for Major Fund Generation Ahead of Elections

NABFID and PSUs Gear Up for Major Fund Generation Ahead of Elections

VoM News Desk | November 24, 2023 | 05:40 PM IST | Breaking News | Follow on Google News

NABFID and PSUs Gear Up for Major Fund Generation Ahead of Elections

NABFID and PSUs Gear Up for Major Fund Generation Ahead of Elections

The National Bank of Financing Infrastructure and Development (NABFID) and various Public Sector Banks (PSUs) in India are undertaking significant capital-raising initiatives to generate substantial funds for infrastructure development.

Key Fundraising Efforts and Plans

1. NABFID Bond Sale: NABFID is planning to raise around ₹10,000 crore through a bond sale. This follows their debut bond sale of ₹10,000 crore in June through 10-year bonds. The upcoming sale is expected to feature 15-year maturity bonds, aiming for a mid-December issuance.
2. Delhi-Mumbai Expressway Fundraising: The Delhi-Mumbai Expressway is looking to raise ₹3,000 crore. With a ‘letter of comfort’ from the National Highways Authority of India, the bond sale is likely to have a 15-year maturity, with a base size of ₹1,000 crore and a green shoe option of ₹2,000 crore.
3. Bank of Baroda Capital Raising: Bank of Baroda has approved raising up to ₹15,000 crore, comprising tier-II debt bonds (up to ₹5,000 crore) and infrastructure bonds (up to ₹10,000 crore). The bank plans to issue ₹2,000 crore Tier II/sub-debt bond, with an option to raise an additional ₹3,000 crore.
4. Canara Bank’s Bond Issue: Canara Bank is reportedly planning to issue bonds worth ₹5,000 crore, categorized as infrastructure bonds with a 10-year maturity period, concluding on November 29, 2033.
5. SBI’s Infrastructure Bonds: Earlier in July, the State Bank of India (SBI) raised ₹10,000 crore by issuing 15-year infrastructure bonds at a coupon rate of 7.54%. The proceeds are earmarked for funding infrastructure projects and supporting affordable housing.

Market Perspective and Investor Demand

These fundraising efforts come in response to robust investor demand for long-term infrastructure bonds. The financial institutions are leveraging this demand to secure the necessary funds for critical infrastructure projects across the country.

Overall Impact and Significance

The collective initiative by NABFID, PSUs, and other Indian infrastructure financiers to generate funds of around ₹30,000 crore demonstrates a focused approach towards enhancing India’s infrastructure landscape. These efforts are particularly significant in the context of upcoming elections, where infrastructure development is often a key agenda. The successful mobilization of these funds will play a crucial role in supporting and accelerating infrastructure projects, thereby contributing to the nation’s overall economic growth.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.