The NaBFID will increase infrastructure financing

  • With aggressive loan disbursement and expansion goals, the National Bank for Financing Infrastructure and Development (NaBFID) is making considerable achievements in infrastructure financing.
  • It has been in operation for less than a year and has already made significant success in lending, with plans to further enhance its footprint in the infrastructure sector.

What is NaBFID?

  • The NBFID was founded in 2021 with the passage of the National Bank for Financing Infrastructure and Development Act.
  • In India, it functions as a specialised Development Finance Institution (DFI).
  • Its key goals include filling long-term non-recourse financing needs for infrastructure development, promoting the development of India’s bond and derivatives markets, and fostering sustainable economic growth.
  • As an All-India Financial Institution (AIFI), the Reserve Bank of India (RBI) would regulate and monitor NBFID.

Targets for Loan Disbursement and Expansion

  • Target Disbursement: NaBFID expects to disburse around 60,000 crore by the conclusion of current fiscal year, demonstrating its commitment to promoting infrastructure development.
  • Loans: During this fiscal year, NaBFID expects to sanction loans totaling 1 lakh crore. These loans will be used to fund both greenfield and brownfield infrastructure projects.
  • Debt Raise: NaBFID just successfully raised 10,000 crore through debt issuance, demonstrating the institution’s ability to attract significant capital.
  • High Demand: The debt issuance drew a flood of bids totaling 23,629.50 crore, over five times the base issue of 5,000 crore.
  • Largest Debt Issuance: The 10-year debt securities represent the largest debt issuance by a national-level institution.
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