NaBFID to Raise Rs 300 Bn in Q4, Says MD
ECONOMY & POLICY

NaBFID to Raise Rs 300 Bn in Q4, Says MD

The National Bank for Financing Infrastructure and Development (NaBFID) is planning to raise Rs 300 billion in the on-going quarter to fund infrastructure projects across India. NaBFID is on track to meet its loan sanction target of Rs 1 trillion for the fiscal year 2025, and is expected to surpass it. However, the bank anticipates challenges in achieving its disbursement target of Rs 600 billion this financial year due to documentation and processing delays. There is often a gap between sanctioning loans and disbursing funds in the infrastructure sector.

In addition to this, NaBFID recently raised Rs 50 billion through a 15-year bond. The institution continues to raise capital, with the amount depending on the disbursement requirements. Set up in 2021, NaBFID is a specialised development finance institution aimed at addressing long-term funding gaps in the infrastructure sector, enhancing the bonds and derivatives market in India, and supporting economic growth.

A key development from the recent budget is the introduction of a partial credit enhancement facility for corporate bonds, expected to be operational by April 2025. This facility will help improve the credit ratings of corporate bonds, enabling companies to access funding at more favourable terms. It will be particularly beneficial for infrastructure projects by reducing financing costs. NaBFID has already worked on the details of the facility, and the government has supported its launch as part of the 2025-26 Budget.

News source: News Drum

The National Bank for Financing Infrastructure and Development (NaBFID) is planning to raise Rs 300 billion in the on-going quarter to fund infrastructure projects across India. NaBFID is on track to meet its loan sanction target of Rs 1 trillion for the fiscal year 2025, and is expected to surpass it. However, the bank anticipates challenges in achieving its disbursement target of Rs 600 billion this financial year due to documentation and processing delays. There is often a gap between sanctioning loans and disbursing funds in the infrastructure sector. In addition to this, NaBFID recently raised Rs 50 billion through a 15-year bond. The institution continues to raise capital, with the amount depending on the disbursement requirements. Set up in 2021, NaBFID is a specialised development finance institution aimed at addressing long-term funding gaps in the infrastructure sector, enhancing the bonds and derivatives market in India, and supporting economic growth. A key development from the recent budget is the introduction of a partial credit enhancement facility for corporate bonds, expected to be operational by April 2025. This facility will help improve the credit ratings of corporate bonds, enabling companies to access funding at more favourable terms. It will be particularly beneficial for infrastructure projects by reducing financing costs. NaBFID has already worked on the details of the facility, and the government has supported its launch as part of the 2025-26 Budget. News source: News Drum

Next Story
Infrastructure Transport

Tiwari Hata Wall Demolished for 3.5-km Heritage Corridor Project

The demolition of the boundary wall of the Tiwari Hata complex began late Tuesday night as part of the 3.5-kilometre Heritage Corridor project, a key initiative led by chief minister Yogi Adityanath to boost urban development in Gorakhpur. The Tiwari Hata property, once home to late politician Harishankar Tiwari, has recently gained renewed attention after the arrest of Samajwadi Party leader Vinay Shankar Tiwari in a money laundering case. PWD executive engineer AK Singh said demolition is underway in areas marked by the Public Works Department as part of the road widening effort. Some resi..

Next Story
Building Material

Arcelor Mittal Nippon Steel Plans Rs 600 Bn Green Steel Investment

ArcelorMittal Nippon Steel (AM/NS) India has unveiled a Rs 600 Bn investment plan aimed at expanding capacity, increasing the use of recycled scrap, and scaling up renewable energy to qualify for a three-star rating under India’s new carbon emission standards. The steelmaker said these steps align with India’s Green Steel Taxonomy, set to roll out in the financial year 2026–27. AM/NS India aims to become the first integrated steel company to achieve the top rating. Currently, sixty-five per cent of the company’s steel capacity comes from the Direct Reduced Iron method, which uses nat..

Next Story
Infrastructure Urban

Kaushalya Logistics Adds Katihar Depot to Boost Cement Distribution

Kaushalya Logistics has commenced operations at its latest facility in Katihar, Bihar, under the carrying and forwarding agent model for Ambuja Cements, part of the Adani Group. The move marks another step in the firm’s expansion in integrated logistics services. With the Katihar Depot, the company now operates fifteen depots under the CCFA model. The new facility is projected to handle over six thousand tonnes of cement every month, strengthening Ambuja Cements’ supply chain in eastern India. This addition brings Kaushalya Logistics’ total depots and rake points to one hundred and thr..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?