Nabard to raise up to Rs 5000 crore through bonds

10 May 2023 , 09:06 AM

This week, the National Bank for Agricultural and Rural Development (Nabard) is anticipated to issue up to Rs5,000 crore in three-year bonds. According to news reports, Nabard’s bond sale will likely include a base size of Rs 2,000 crore and a greenshoe option of Rs3,000 crore. The bonds will probably mature on August 31, 2026.

In a separate transaction, SBI Cards and Payment Services anticipates wrapping up sales of five-year bonds totalling about Rs 800 crores next week. The AAA-rated bonds by CRISIL and ICRA may have an interest rate of 7.85%, according to sources.

On April 21, Nabard issued securities with a July 2026 maturity value Rs4,922 crore. Bonds issued by Nabard have a 7.56% coupon.

In the corporate debt market, Nabard bonds are frequently used as price benchmarks.

The most liquid three-year central government security finished Tuesday’s trading at a yield of 6.96%. The benchmarks used by other entities to calculate borrowing costs are sovereign bond yields.

For feedback and suggestions, write to us at [e-mail]