Infra Financiers seek to raise Rs 30,000 crore
bond markets to raise capital for infrastructure projects, with big names such as the National Bank for Financing Infrastructure and Development as well as large public sector banks eyeing fund raises worth close to ₹30,000 crore in coming days.
Sources aware of the developments told ET that NABFID is eyeing a bond sale worth up to ₹10,000 crore, while the Delhi-Mumbai Expressway aims to garner funds worth up to ₹3,000 crore. Amongst banks, state-owned lenders Bank of Baroda and Canara Bank are looking to raise funds worth up to ₹10,000 crore and ₹5,000 crore, respectively, through the issuance of infrastructure bonds, the sources said.
The massive bond pipeline comes at a time when government bond yields have eased significantly from seven-month highs touched in early October.
Yield on the 10-year benchmark bond was last at 7.25%. The benchmark yield had climbed to 7.38% on October 6.
Government bond yields are the benchmarks for pricing corporate bonds.
«NABFID's bond sale will most likely occur around mid-December and the security will be of 15-year maturity. After their debut bond sale worth ₹10,000 crore in June, which was through 10-year bonds, they have decided to opt for a longer maturity paper this time as bonds in the long-term infrastructure space are seeing firm demand from investors,» a source said.
Amongst other investors including banks, large institutional players such as insurance firms, pension and provident funds are expected to show appetite for NABFID's bonds.
