Rajkiran Rai G, MD, NaBFID

The National Bank for Financing Infrastructure and Development (NaBFID) completed its debut US dollar bond issuance, raising $750 million through a 10-year benchmark bond priced at 105 basis points over US Treasuries, resulting in a coupon of 6.122 per cent. The bond is listed on both GIFT IFSC exchanges, India INX and NSE International Exchange (NSE-IX).

The issuance is the first drawdown under NaBFID’s $4 billion Global Medium-Term Note (GMTN) programme and is rated BBB+ by CareEdge. The bond matures September 30, 2036 and is expected to be eligible for inclusion in widely tracked emerging market indices, including EMBI and JACI.

US investors account for 55 per cent of demand

The order book drew broad geographic participation; US investors accounted for 55 per cent of demand, followed by Europe, Middle East and Africa at 30 per cent, and Asia at 15 per cent. The US allocation followed NaBFID’s conversion of its original programme structure to a GMTN format, which opened access to American investors.

Managing Director Rajkiran Rai G. said the response “...reflects their confidence in the Institution’s credit strength, institutional mandate and India’s long-term infrastructure growth potential.”

Currency risk fully hedged

The principal’s currency risk is fully hedged through a Reserve Bank of India swap for five years. The bond carries a fixed coupon, locking in borrowing costs for the tenor.

CFO Monika Kalia said the transaction “...establishes an important reference point for future foreign currency issuances.” NaBFID, which requires $10–12 billion annually for infrastructure financing, has been building the GMTN programme to diversify beyond domestic capital markets.

Proceeds will fund infrastructure projects supporting India’s long-term economic development.

Published on October 1, 2026