NaBFID to raise $1 billion via ECB, dollar bonds in FY26, says MD Rajkiran Rai

Rajkiran Rai G

National Bank for Financing Infrastructure and Development (NaBFID) to raise up to $1 billion through combination of external commercial borrowings (ECB) and dollar bonds in the rest of the current financial year, Rajkiran Rai, managing director said.

"We can raise up to $1 billion, that is what we are looking at, but then it can be partial bonds and partial ECB, we are yet to crystallize, depending on the cost we will decide," Rai said on the sidelines of the FIBAC 2025 event.

The state-run infrastructure lender has said that the company have sanction limits up to Rs 2.4 lakh crore, after that disbursements are only close to Rs 80,000-90,000 crore. "Like as the disbursements happen, we will borrow, we have already put out our data and how much we are planning to borrow, but actual borrowings will depend."

He added that the domestic borrowing cost is moving up and for the Nabfid the borrowing cost has shot up by 10-15 basis points (Bps).

The yield on the domestic money market instruments have started increasing after the government has announced the GST reforms, which is expected to increase the borrowing of the government through government securities.

Additionally, the tariffs impact is also forcing the borrowing cost in theonry market to shot up.

Further, Rai said that NaBFID is also funding municipal corporation whenever there is an opportunity.

"Municipal corporations actually need lot of credit, but their capacity to take credit and utilize it is bit low. Wherever there is a opportunity we are lending," he added.