India infrastructure lender plans up to $4.7 billion fundraising

Improving India’s infrastructure is a key goal of Prime Minister Narendra Modi’s government

India’s state-owned National Bank for Financing Infrastructure & Development is targeting its largest ever fundraising for the January-March period to back the nation’s ambitious growth push.

The lender, which specializes in financing infrastructure projects, plans to raise as much as Rs 40,000 crore ($4.7 billion) from the local-debt market through a combination of bonds and loans in the quarter, said people familiar with the matter. NaBFID has already received approval from government-owned banks for some of the borrowing and proposed credit facilities will be mostly for longer-term tenors of 10 to 20 years, the people said asking not to be identified.

NaBFID didn’t immediately respond to a Bloomberg request for comment. Set up in 2021 by an act of parliament, NaBFID sold about Rs 8,900 crore of bonds in 2024, according to data compiled by Bloomberg.

Improving India’s infrastructure is a key goal of Prime Minister Narendra Modi’s government as his administration seeks to shore up growth in one of the world’s fastest-expanding major economies. India needs $2.2 trillion of investment in infrastructure to increase the size of its economy to $7 trillion by 2030, Knight Frank said in a report in December.

NaBFID’s financing plans could change depending on market conditions, the people said.