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Informist, Friday, Nov. 29, 2024

 

--NaBFID MD: Disbursements lagging by 60-90 days, didn't need to raise funds 
--NaBFID MD: May reschedule fundraising via bonds to Dec end 
--CONTEXT: MD in Oct said NaBFID to raise INR 400 bln via bonds Oct-Mar 

 

By Sachi Pandey and Vaishali Tyagi 

 

MUMBAI – The National Bank for Financing Infrastructure and Development may delay the start of its plan to raise INR 400 billion in the second half of the financial year 2024-25 (Apr-Mar) to the end of December, Managing Director Rajkiran Rai G. said.

 

"We are expecting by December end it (raising funds via bonds) will pick up. Now our window to hit the market and raise money is hardly pending, so we will do it closer to that (December end or next quarter)," Rai told Informist on the sidelines of the India Debt Capital Market Summit, Trust Group. Friday.

 

"Because of multiple compliances and other reasons, our planned disbursements are slightly delayed by 60-90 days. Even though our total plan may get shifted a bit to the last quarter, fundraising is on track," Rai said. Since the disbursements are lagging, the infrastructure financier does not need to raise funds immediately, he said.

 

Rai had announced in October plans to raise up to INR 400 billion through bonds maturing in 10-20 years in the second half of FY25. In the first half of the year, the government-owned infrastructure financing institution raised INR 89.11 billion through 10-year and 20-year bonds at coupons of 7.43% and 7.36%, respectively. It also tapped banks for loans of INR 27.58 billion in Apr-Sept.

 

Earlier, Rai had said that while loan sanctions were moving forward, disbursements were slower, especially for road projects. The renewable energy sector showed steady growth, driven by the increasing number of proposals for hybrid projects that combine solar, wind, and battery storage, he had said.

 

The institution sanctioned loans amounting to INR 308.55 billion and disbursed INR 145 billion in Apr-Sept. Its outstanding loans rose to INR 475.76 billion at the end of September, from INR 353.42 billion as of Mar. 31.  End

 

Edited by Rajeev Pai

 

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