India’s National Bank for Financing Infrastructure and Development (NaBFID) is set to enter the international credit markets, aiming to raise up to $2 billion through loans and bonds in the current financial year. This marks a significant step for the state-backed infrastructure lender as it seeks to diversify its funding sources and support India’s ambitious infrastructure development goals.
Initially, NaBFID plans to secure at least $250 million via an external commercial borrowing loan with a tenor of three to five years. The agency is currently engaging with rating agencies to obtain a credit rating, which is expected to be finalized soon. The first tranche of this offshore borrowing is anticipated to be concluded by June 2025, contingent on favorable market conditions.
The move to tap into the offshore debt market comes as NaBFID aims to bridge the substantial financing gap in India’s infrastructure sector, which has been a significant obstacle to the country’s growth aspirations. By accessing international capital, NaBFID intends to augment the domestic bond market and attract new capital, thereby enhancing the availability of funds for critical infrastructure projects across the nation.
This initiative aligns with the government’s broader strategy to bolster infrastructure development and attract private investment, thereby driving economic growth and improving the quality of life for citizens. The success of NaBFID’s offshore debt issuance could pave the way for other Indian institutions to explore international funding avenues, further integrating India into the global financial ecosystem.
