Nabard raises ₹6,779 crore via three-year bond at 7.01% cut-off yield

NABARD has raised ₹6,779 cr through a three-year bond at a 7.01% yield, as strong demand for AAA-rated short-tenor paper persists despite elevated sovereign yields and a subdued corporate bond market

National Bank for Agriculture and Rural Development (Nabard) on Tuesday raised Rs 6,779 crore through a three-year bond at a cut-off yield of 7.01 per cent, dealers said. Market participants termed the pricing favourable for the issuer, citing steady demand for AAA-rated paper in the shorter segment of the curve despite elevated sovereign yields.

 

Meanwhile, REC Ltd will tap the bond market on Wednesday to raise up to Rs 3,000 crore. The issue has a base size of Rs 500 crore and a green-shoe option of Rs 2,500 crore. The bonds have a tenor of one year, 11 months and 29 days.

 

Separately, IIFL Finance has opened its public issue of secured NCDs to raise up to Rs 2,000 crore, comprising a base issue of Rs 500 crore and a green-shoe option of Rs 1,500 crore. The issue, which opens on Tuesday, will close on March 4. It offers nine series with maturities of two, three and five years and coupon rates ranging from 8.7 per cent to 9 per cent. The proceeds will be used for lending, refinancing and general corporate purposes.

 

Last week, major state-owned issuers tapped the market for over Rs 20,000 crore.

 

Fundraising through the corporate bond market has remained relatively subdued in FY26, as elevated yields driven by persistent geopolitical tensions have dampened issuer appetite. During the first nine months of 2025-26 (April–December period), funds raised through this route declined 6 per cent year-on-year to Rs 6.76 trillion, compared with Rs 7.19 trillion in the year-ago period.

 

In calendar year 2025, corporate bond issuances stood at Rs 10.08 trillion, against Rs 10.09 trillion in 2024.