19 hrs ago
NaBFID Plans Rs 1 Lakh Crore Fundraise, Eyes Overseas Markets
NaBFID lends money for large infrastructure projects.
It plans to raise up to Rs 1 lakh crore to support more projects.
Up to 40% of this money may come from overseas markets.
NaBFID wants its total lending to reach Rs 5 lakh crore by 2029–30.
The Reserve Bank of India has created a temporary opportunity for institutions to borrow foreign currency overseas.
This opportunity is available until December 2026.
NaBFID expects many projects in areas such as ports, airports, logistics and urban development.
It also says banks usually lend during construction, while insurance and pension funds can provide money for many years after projects are completed.
NaBFID plans to raise up to Rs 1 lakh crore, with as much as 40% potentially coming from overseas markets.
The infrastructure lender is targeting a loan book of Rs 5 lakh crore by 2029–30.
The Reserve Bank of India’s overseas borrowing window for eligible entities will remain open until December 2026.
NaBFID sees growth opportunities in ports, shipbuilding, airports, logistics, high-speed corridors, warehousing and urban infrastructure.
NaBFID is advising about 100 urban local bodies and is seeking greater participation from insurance companies and pension funds.
- Who
- NaBFID, led in the discussion by Managing Director Rajkiran Rai, is planning the fundraise; Securities and Exchange Board of India Chairman Tuhin Kanta Pandey also discussed municipal financing needs.
- What
- NaBFID plans to raise up to Rs 1 lakh crore, including up to 40% from overseas markets, while targeting a Rs 5 lakh crore loan book by 2029–30.
- Where
- The financing will support infrastructure projects in India, with part of the fundraising potentially conducted in overseas markets.
- When
- The overseas foreign-currency borrowing window is available until December 2026; the loan-book target is set for 2029–30.
- Why
- NaBFID expects increasing demand for infrastructure funding and wants to address long-term financing gaps.
Key facts
- Planned fundraise
- Up to Rs 1 lakh crore
- Potential overseas share
- Up to 40%
- Loan-book target
- Rs 5 lakh crore by 2029–30
- Borrowing window
- Overseas foreign-currency borrowings and external commercial borrowings remain available until December 2026
- Urban advisory work
- NaBFID is advising around 100 urban local bodies
- Project development period
- Projects typically require two to three years to be completed
- Long-term investor horizon
- Insurance companies and pension funds seek investments with tenures of 30–40 years
Quotes
Rajiv Rai
NaBFID managing director discussing the institution’s funding sources and use of the RBI borrowing window.
“Commercial banks are not equipped to provide long-term funding because their liabilities typically have tenures of one to three years. This can result in asset-liability mismatches. That is where long-term investors come in. Insurance companies and pension funds need investments with tenures of 30–40 years, and that is where we have to bridge the gaps.”
businesstoday.in
“We regularly raise money from the domestic bond market, bank credit lines and other sources. But the RBI window is available right now, so we will make the best use of it until December.”
businesstoday.in
Sources
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