India infrastructure lender plans up to 400 billion rupees fundraising

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

The lender, which specialises in financing infrastructure projects, plans to raise as much as 400 billion rupees (S$6.4 billion) from the local debt market through a combination of bonds and loans in the quarter, said sources 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 sources said asking not to be identified.

NaBFID did not immediately respond to a Bloomberg request for comment. Set up in 2021 by an act of parliament, NaBFID sold about 89 billion rupees 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 US$2.2 trillion of investment in infrastructure to increase the size of its economy to US$7 trillion by 2030, Knight Frank said in a report in December. BLOOMBERG