NABARD to float bonds worth Rs 7,000 crore on January 31

NABARD

National Bank for Agriculture and Rural Development (NABARD) plans to raise up to Rs 7,000 crore through bonds maturing in five years, two months and 29 days, market sources have said.

The bonds have a base issue of Rs 2,000 crore and oversubscription of Rs 5,000 crore as a greenshoe option. A greenshoe option gives the underwriter the right to sell investors more bonds than planned if the demand is higher than expected.

The bidding for these bonds will take place on January 31 between 10.30 and and 11:30 am on the electronic bidding platform of BSE.

The exchange of bonds and money between issuers and investors will be done on February 1, which will be the pay-in date.

The bonds have been rated "AAA" with "Stable" outlook by India Ratings and CRISIL.

The minimum application size is Rs 1 lakh and in multiples of Rs 1 lakh.

On January 29, Summit Digitel Infrastructure Ltd, Piramal Capital & Housing Finance Ltd, and Lendingkart Finance Ltd raised funds through issuance of bonds.

Summit Digitel Infrastructure raised Rs 650 crore through five-year bonds and Piramal Capital raised Rs 200 crore through over one-year bonds.

Lendingkart Finance raised Rs 55 crore through two year bonds at 11.25 percent coupon. The bonds have been rated ‘BBB+’ by ICRA.