Nabard to raise $2-B via ECBs

Mumbai-based National Bank for Agriculture and Rural Development (Nabard) is negotiating rates to raise USD 2 billion through external commercial borrowings (ECBs). This fundraising initiative is being conducted under the Reserve Bank of India’s special USD-INR forex swap facility.Nabard, which recently subscribed to the maiden issuance of zero-coupon, zero-principal instruments by the National Skill Development Corporation, requires the funds to meet the demand for short-term credit refinance from regional rural banks and state co-operative banks. The capital will also be used to support investment credit for rural housing, self-help groups, and the non-farm and agriculture sectors.