NaBFID to raise ₹8,000 cr via bonds, includes first 5-yr paper: Bankers

India's National Bank for Financing Infrastructure and Development (NaBFID) plans to raise ₹8,000 crore ($938.2 million) through a bond sale on Monday, which includes a five-year paper for the first time since it started issuing debt, three merchant bankers said.

The infrastructure lender aims to raise at least ₹1,000 crore through the sale of five-year bonds, which has a greenshoe option to retain an additional ₹2,000 crore, the bankers said on Friday.

It also aims to raise at least ₹2,000 crore through 10-year papers, with a greenshoe option of ₹3,000 crore, the bankers added.

The bonds are rated AAA by Icra and Crisil and the company has invited coupon and commitment bids from bankers and investors for the issues on Monday.

NaBFID did not reply to a Reuters email seeking comment.

The issuance comes ahead of the Reserve Bank of India's monetary policy decision due on April 9, where the central bank is largely expected to cut its key interest rate by 25 basis points.

Some market participants are also expecting the RBI to change its policy stance, while providing some guidance on banking system liquidity surplus.

"Better liquidity as well as fall in yields could have encouraged the lender to also opt for a shorter duration option along with its regular long-term funding," one of the bankers said.

NaBFID has raised an aggregate of around ₹36,400 crore through the sale of bonds maturing in 10 years to 20 years over the last two years.

In the last financial year, it raised around ₹16,900 crore through bond sales, after raising around ₹19,500 crore in 2023-2024.