Each of the three institutions – the National Bank for Agriculture and Rural Development (Nabard), the Small Industries Development Bank of India (Sidbi), and the National Bank for Financing Infrastructure and Development (NaBFID) – is looking to borrow at least $500 million through foreign-currency loans.
All three are going down the loan route instead of issuing dollar bonds because none of them has previously raised funds through dollar debt. Sources said the loan process is simpler and quicker than a debut bond issuance.
NaBFID has made the most progress and has already started discussions with potential lenders, a senior executive confirmed.
“We expect to raise up to $2 billion via ECBs in this financial year. At present, we are planning to raise $500 million through the ECB (external commercial borrowing) route, and we have already started our activity and are exploring in the market,” NaBFID managing director Rajkiran Rai told Reuters.
