Debt financing
Infrastructure lender NaBFID seeks 5-yr USD loan after RBI easing norms on overseas borrowing
The National Bank for Financing Infrastructure & Development ( NaBFID ) is in talks with banks to raise funds through a five-year dollar-denominated loan. The state-owned infrastructure lender aims to leverage the Reserve Bank of India’s (RBI) recent measures designed to facilitate foreign currency inflows.The company is targeting a pricing range of 6.5% to 7%, a figure that accounts for hedging costs. The exact size of the loan will be contingent upon the final pricing terms. NaBFID aims to raise between $8-B and $9-B from both domestic and offshore markets during the financial year ending March 2027.The RBI recently introduced a concessional foreign exchange swap facility for state-run firms, offering a fixed rate of 1.5% per annum. This move is expected to reduce hedging costs significantly.
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