Archive · 22 Jul 2026
NaBFID Issues ₹20,000 Crore Zero-Coupon Bonds
The National Bank for Financing Infrastructure and Development (NaBFID) has issued ₹20,000 crore worth of zero-coupon bonds.
These bonds are different from regular bonds because they don't pay interest regularly.
Instead, investors buy them at a discount and get the full value back after 10 years.
This means they make money from the difference between the purchase price and the maturity value.
The bonds are meant to help fund big infrastructure projects in India, like roads, energy, and logistics.
Investors who want steady returns over a long time might find these bonds interesting.
The bonds are taxed differently from fixed deposits.
The tax is only applied when the bond is sold or matures, not every year.
This makes them a good option for people who want to avoid annual taxes on interest.
NaBFID issues ₹20,000 crore zero-coupon bonds with a 10-year maturity period.
Bonds are issued at a discount and redeemed at full value, generating returns from capital appreciation.
Total issue size is ₹20,000 crore, with 20 lakh bonds available at an indicative price of ₹48,519.40 each.
Annual compounded return is around 7.49%, with no periodic interest payouts.
Taxation on capital gains: long-term gains taxed at 12.5%, short-term gains taxed according to the investor's income tax slab.
- Who
- National Bank for Financing Infrastructure and Development (NaBFID)
- What
- Issue of ₹20,000 crore zero-coupon bonds
- When
- Recently notified by the Central Board of Direct Taxes (CBDT)
- Where
- India
- Why
- To fund infrastructure development across sectors such as transportation, energy, and logistics
Investor Perspective
Government Perspective
Investment Returns
Investor Perspective
Investors benefit from capital appreciation over the 10-year period, with an annual compounded return of around 7.49%.
Government Perspective
The government aims to fund infrastructure development across various sectors.
Taxation
Investor Perspective
Investors prefer zero-coupon bonds due to the absence of annual taxation on accrued interest, with tax liability arising only at redemption or transfer.
Government Perspective
The government benefits from the funds raised through these bonds to support infrastructure projects.
- Issuer
- National Bank for Financing Infrastructure and Development (NaBFID)
- Bond Type
- Zero-coupon bond
- Total Issue Size
- ₹20,000 crore
- Number of Bonds
- 20 lakh
- Tenure
- 10 years
- Face Value per Bond
- ₹1,00,000
- Indicative Issue Price
- ₹48,519.40 per bond
- Maturity Value
- ₹1,00,000 per bond
- Annual Compounded Return
- Around 7.49% per year
- Taxation on Capital Gains
- Long-term capital gains taxed at 12.5%, short-term gains taxed according to investor's income tax slab