NHB, IRFC plan bond sales to raise up to Rs 4,500 crore

Mumbai: National Housing Bank (NHB) and Indian Railway Finance Corporation (IRFC) are likely to tap debt capital markets this week to issue bonds worth a total of up to ₹4,500 crore.

NHB is set to issue three-year non-convertible debentures (NCD) maturing in July 2026 with a base size of ₹500 crore with a green shoe option of ₹1,500 crore, sources aware of the development said. Bidding for the bonds will likely take place on May 24.

Meanwhile, IRFC's bond sale, which is likely to happen on the same day, has a base size of ₹500 crore and a green shoe option of ₹2,000 crore. IRFC is likely to issue three-year NCDs maturing in October 2026.


Issuances of bonds by firms have become cheaper over the last month due to a sharp decline in government bond yields, which are the pricing benchmarks for corporate debt.

Short-term bond yields in particular, have witnessed a sharp decline of late, due to improved liquidity conditions in the banking system. A large part of corporate borrowing is in the three-year maturity bracket.