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Informist, Thursday, Feb. 5, 2026

--NABARD official: To raise up to INR 70 bln via 3-year bonds next week 

By J. Navya Sruthi

MUMBAI – The National Bank for Agriculture and Rural Development plans to raise up to INR 70 billion through three-year bonds next week, a senior official at the state-owned company said. The issue will have a base size of INR 20 billion and a greenshoe option of INR 50 billion.  

"Yields have softened really, and we expect RBI (Reserve Bank of India) to announce more liquidity measures which will be positive. We expect coupon to be close to 7.20%," the official told Informist on the condition of anonymity. The official expects the Reserve Bank of India to keep rates unchanged at Friday's Monetary Policy Committee's sixth meeting in 2025-26 (Apr-Mar).

"We will come up with at least two more issuances in this FY(26)," the official said. Dealers expect the state-owned company to raise INR 50 billion to INR 100 billion before the end of the current financial year.  

The state-owned company had raised INR 68.64 billion on Jan. 29, through bonds maturing on Feb. 23, 2029. It had set the coupon at 7.27% on these bonds. The company had scrapped the same bond issuance in December as investors had demanded a higher coupon.

According to the bid books accessed by Informist, for the December issue, NABARD had received 84 bids totalling INR 124.60 billion, with coupons ranging from 6.84% to 7.12%. The company had expected the coupon to be in the range of 6.70-6.75%. Prior to the issuance in December, the apex development bank had invited bids on Nov. 25 to raise the same amount through the same bond but withdrew the issue for the same reason. 

In the secondary market, yields on NABARD's three-year bonds have fallen 14 basis points to 7.10% from their last issuance late January.  End

Edited by Tanima Banerjee

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