Indian Bank, NaBFID to raise Rs 8 crore via bonds by March

Indian Bank and National ​Bank for Financing Infrastructure ​and Development plan to raise a combined 80 ​billion rupees ($864.10 million) from the corporate bond market by March, two bankers with knowledge of the matter said on Wednesday.

Indian Bank is set to raise 50 ‌billion rupees ⁠through ⁠seven- or 10-year infrastructure bonds, while NaBFID plans to raise about 30 billion rupees through 10-year notes, the bankers said.

"Both the entities are targeting to complete ​the fundraising as early as possible in the next week, and have already tied up with some investors," one of the bankers ​said.


The bankers requested anonymity as they ⁠are not ‌authorised to speak to the media. Indian Bank and ​NaBFID ​did not reply to a Reuters email seeking comment.

This ⁠would be the first time Indian Bank will ​tap the bond market in nearly 18 months. In ​October 2024, the lender had raised 50 billion rupees through 10-year infrastructure bonds at 7.12% coupon.

The issuance follows a pickup in infrastructure bond fundraising, with Union Bank of India set to raise 75 billion rupees through 10-year bonds on Friday.

Earlier in the ‌month, Bank of Baroda raised 100 billion rupees through seven-year bonds at 7.10%, and the issue witnessed aggressive bids ​from large ​state-run provident fund house.

"Strong ⁠domestic liquidity and institutional demand mean that high-quality banks and PSU issuers still find access to funding, albeit at slightly higher coupons," Harit ​Oberoi, head of fixed income at Motilal Oswal Wealth Management.

Meanwhile, NaBFID had raised around 25 billion rupees through 10-year bonds at 7.45% coupon, followed by withdrawal of its first ever three-year bond issue, after bids came in higher than expected.

($1 = 92.5820 Indian rupees)