Nabard plans to raise up to Rs 40,000 crore through long-term bonds

The National Bank for Agriculture and Rural Development (Nabard) is planning to raise up to Rs 40,000 crore through long-term bonds. 

The money raised will be mostly used for rural development programmes run by the government. Nabard, the government-owned financial institution, mostly raises funds through short- and medium-term instruments. It looks for long-duration instruments when working on behalf of the government, bond market dealers said. 

Rating agency ICRA has assigned “AAA” rating to these bonds. Broadly, these rating are valid for one year. The financial institution, with quasi-sovereign status, has maintained a competitive and diversified funding profile supported by low-cost rural infrastructure development fund deposits.