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Informist, Thursday, Mar. 12, 2026

 

By J. Navya Sruthi

 

MUMBAI - After cancelling its plan to borrow up to INR 80 billion through seven-year bonds Thursday, the National Bank for Agriculture and Rural Development now plans to raise INR 80 billion next week through three-year bonds, a senior official at the company said. The company also plans to raise funds through 10-year bonds in the current financial year ending Mar. 31, the official told Informist on condition of anonymity.

 

NABARD was expecting to raise seven-year money at 7.10-7.15%, the official said. According to market sources, the base size of INR 20 billion was subscribed at 7.37%. It got bids worth only INR 52.69 billion against the total INR 80 billion fundraise, including the greenshoe option. The highest bidder demanded a yield of 7.57%. The market's expectation was that the entire issuance, including the INR 60-billion greenshoe, would have been cleared at 7.25-7.30%.

 

Next week, NABARD expects it will be able to borrow three-year money at 7.10-7.15%, the official said. The issue next week will have a base size of INR 20 billion and a greenshoe option of INR 60 billion. "Monday or Tuesday, we will come with 3-year bonds which is again 2+6 (INR 20 billion plus INR 60 billion). We expect coupon to be at 7.10-7.15%, this range is at least for base size (of INR 20 billion)," the official said. Thursday, the yield on NABARD's April 2029 bond, the benchmark for three-year corporate bonds, was at 7.27-7.30% in the secondary market, unchanged from Wednesday.   

 

The official said the company plans to raise funds through a 10-year bond before the end of the current financial year. "We need approval first and before that have clarity on what the market is expecting. It will not make sense for us to announce and scrap every time," the official said. The official refused to comment about the company's coupon expectation for 10-year bonds due to uncertainty in the market. 

 

Thursday, the state-owned company scrapped its bond issuance for the third time this financial year due to a higher coupon rate at the time of bidding.  End

 

Edited by Vandana Hingorani

 

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