New Delhi: The National Bank for Financing Infrastructure and Development (NaBFID) plans to raise up to USD 1 billion from international markets in FY26. The fundraising will be split between external commercial borrowings (ECBs) and bond issuances, depending on market conditions.
Strategic Fundraising Plans
Rajkiran Rai, Managing Director of NaBFID, announced that the institution has recently secured international credit ratings, enabling global fundraising. He said the funds would be mobilised in line with disbursement needs, either through domestic or international channels.
“The launch could happen within a month, subject to market conditions,” Rai stated on the sidelines of the annual FIBAC event.
Despite concerns over rising US tariffs, Rai confirmed that disbursements would remain unaffected. He emphasised India’s economic resilience in handling external challenges.
Expanding Project Pipeline
NaBFID currently has sanctioned limits worth ₹2.4 lakh crore, with around ₹90,000 crore slated for disbursement. Rai stressed the need for accelerating project launches to match the country’s growth ambitions.
“Good projects are getting funded, but more demand and launches are necessary,” he noted, pointing out gaps in the project pipeline.
Focus on Municipal Bonds
Highlighting the importance of strengthening municipal financing, Rai called for expanding municipal bond issuances. He said NaBFID has set up an advisory arm to support local bodies in accessing the capital market.
Over the next five years, up to 500 municipal bodies are expected to tap bond markets, compared to only seven issuances so far. Lack of strong ratings and balance sheets remain a hurdle, he added.
Industry Perspective
Atul Kumar Goel, CEO of the Indian Banks’ Association, highlighted India’s strong economic fundamentals and growth potential. Meanwhile, Bank of Baroda MD and CEO Debdatta Chand stressed the importance of investing in technology, noting that digital platforms like UPI are transforming banking operations.
About NaBFID
The National Bank for Financing Infrastructure and Development (NaBFID), set up in 2021 as a Development Finance Institution (DFI), plays a pivotal role in financing India’s infrastructure growth. With a mandate to support long-term capital requirements, NaBFID is focused on building a robust financial ecosystem for sustainable development.
Also Read: Big Boost: NaBFID Sanctions Rs 2.3 Lakh Crore Loans to 232 Infrastructure Projects Across India
