NaBFID to raise Rs 30,000 cr during Q4 for funding infra projects: MD

NaBFID Managing Director and Chief Executive Officer Rajkiran Rai G has said it is planning to raise Rs 30,000 crore during the ongoing quarter for funding infrastructure projects in the country.

"We were expected to touch Rs 1 lakh crore of (loan) sanction this year (FY25)... we are very close to that, and we will be crossing that target this year," he told PTI in an interview.

On the disbursement side, he said, "We are expected to disburse about Rs 60,000 crore this financial year. That target seems a bit challenging because of documentation and other processing."  In the infrastructure segment, there is always a gap between sanction and disbursement.

National Bank for Financing Infrastructure and Development (NaBFID) raised about Rs 5,000 crore via a 15-year paper.

"We are continuously raising money, but it will be linked to disbursements. We may raise up to Rs 30,000 crore this quarter, depending on the requirement," he said.

NaBFID, set up in 2021, is a specialised development finance institution in India aimed at supporting the country's infrastructure sector.

It is set up with the essential objectives of addressing the gaps in long-term non-recourse finance for infrastructure development, strengthening the development of bonds and derivatives markets in India, and sustainably boosting the country's economy.

Rai further said the partial credit enhancement facility for corporate bonds announced in the Budget 2025-26 should be operational in April.

Partial credit enhancement is a product that will enable the bond market development as it would help upgrade the credit rating of the bonds of the corporates. This will thus help corporates access the funds from the bond market on better terms as their ratings are upgraded.

Partial credit enhancement becomes very essential for infrastructure projects as it will help mobilise funds at cheaper rate, he said.

"We have already worked on the contours, and the government also enabled us by making the budget announcement," he said.

NaBFID will set up a 'Partial Credit Enhancement Facility' for corporate bonds for infrastructure, Finance Minister Nirmala Sitharman said in her 2025-26 Budget speech.

Asked when the product would be launched, Rai said, "You can say by April, it may be before that.