Archive · 28 Sep 2025
NaBFID, World Bank, and ADB Team Up for Infrastructure Bonds
Imagine companies need money to build roads and bridges, but it's expensive to borrow.
The National Bank for Financing Infrastructure and Development (NaBFID) is teaming up with the World Bank and the Asian Development Bank (ADB) to help.
They're creating a $1 billion fund to make it easier for these companies to get loans.
This fund will boost the credit ratings of bonds issued by these companies, making them more attractive to investors.
This helps lower the interest rates, which means the companies can borrow money more cheaply.
It will help increase infrastructure development in India.
NaBFID is collaborating with the World Bank and ADB on a $1 billion risk-sharing facility.
The facility aims to enhance credit for infrastructure firms with 'BBB' to 'A' credit ratings.
It will help lower borrowing costs and facilitate access to the bond market.
The market opportunity for credit-enhanced bonds is estimated at ₹5 trillion.
The initiative seeks to bridge India's infrastructure financing gap.
- Who
- NaBFID, World Bank, and ADB
- What
- Collaborating on a $1 billion risk-sharing facility to enhance credit for infrastructure bonds
- When
- Process expected to start soon
- Where
- India
- Why
- To lower borrowing costs for infrastructure companies and bridge the infrastructure financing gap.
- Parties Involved
- NaBFID, World Bank, ADB
- Financial Commitment
- $1 billion
- Purpose
- Credit enhancement for infrastructure bonds
- Targeted Credit Ratings
- BBB to A
- Estimated Market Opportunity
- ₹5 trillion
- NaBFID's Potential Exposure
- ₹75,000 crore (over 2 years)