Nabard aims to raise funds via maiden ECB in FY26, says chairman Shaji KV

NABARD

National Bank for Agriculture and Rural Development (Nabard) is looking to raise funds through its maiden external commercial borrowing (ECB) in current financial year, a top official said.

The company has has received the permission from the Reserve Bank of India (RBI) to undertake issuance, its chairman Shaji KV told on the sidelines of the FIBAC 2025.

“We have the permission in place and have started work on it,” Shaji said.

The has not given any timeline for the issuance.

Proceeds of the issue will be deployed for climate change-related financing activities for which funds are available at a discount, he said, adding that nearly the entire rural portfolio of the lender will qualify under the category.

Stating that it is yet to appoint merchant bankers to undertake the fundraise and the final costs of borrowing will play an important role in determining the final outcome of the ECB plans, he said.

It will first set up a representative office in the GIFT City to undertake the ECB, he said, adding that if the activity increases, Nabard may also open a full-fledged branch in the international financial services centre.

When asked for the reasons why it has not done any issuances in the domestic market despite having a borrowing calendar, Shaji pointed to the hardening of yields, hinting that the higher costs impeded it from accessing the markets.