The National Bank for Financing Infrastructure and Development (NaBFID) has successfully completed its debut U.S. dollar denominated bond issuance, raising $750 million through a 10-year maturity instrument. According to reports from The Hindu BusinessLine and Economic Times, the bonds were sold at a spread of 105 basis points above U.S. Treasury, with the coupon working out to 6.1220%. This pricing was significantly lower than the initial guidance of 130 basis points, demonstrating strong market confidence in the first-time issuer and establishing this as one of India's largest fintech debt deals.
The bond issue generated substantial investor interest, with NaBFID receiving bids worth over $2 billion during the offering period. As reported by The Hindu BusinessLine, this strong demand reflects the market's confidence in the Indian financial institution's creditworthiness and the attractiveness of the dollar bond structure. The pricing ultimately came in at 25 basis points below initial guidance, indicating robust investor appetite for the infrastructure financing institution's debut international offering.
According to The Hindu BusinessLine, NaBFID is targeting a total fundraise of $4 billion before the end of 2026. The institution has already made significant progress toward this goal, having raised $850 million through external commercial borrowing in August. Additionally, NaBFID had previously raised $125 million via a dollar loan in March, which marked its debut borrowing in the offshore market. The bonds were sold under the discounted swap window, following RBI's approval allowing banks and state-run companies to access subsidised hedging facilities since June.
As reported by The Hindu BusinessLine and Economic Times, NaBFID joins Power Finance Corp as another state-run entity that has accessed the dollar bond market to raise funds. The broader market has seen significant activity under the RBI's swap facility, with lenders raising $13 billion since June. CreditSights had expected the pricing at a spread of 105 basis points, though noted that fair value is around 97 basis points, indicating the bonds were priced competitively within market expectations for the infrastructure financing institution.
