National Bank for Agriculture and Rural Development (Nabard) plans to raise ₹3,500 crore through tax-free non-convertible bonds.
“The issue will open on March 9 and close on March 14,” Nabard said in a statement on Tuesday, adding that the bonds will list on the BSE.
The proceeds will be mainly used for direct lending to irrigation projects and refinancing irrigation projects.
Nearly 60 per cent of the issue will be reserved for retail investors, who will be offered a coupon of 7.29 per cent and 7.64 per cent respectively for 10-year and 15-year bonds.
For qualified institutional buyers (QIB), corporates and high net worth individuals, the coupon has been set at 7.04 per cent and 7.35 per cent for 10- and 15-year bonds respectively
The interest on the bonds will be paid annually and allotment would be done on a first-come-first-serve basis.