NaBFID expects loan disbursements to reach ₹60,000 cr in FY24

BL Mumbai Bureau Updated - June 20, 2023 at 09:36 PM.

By March 2026, Rajkiran Rai, MD and CEO, expects NaBFID’s sanctions to swell to ₹3 lakh crore

Rajkiran Rai, MD and CEO, NaBFID | Photo Credit: BIJOY GHOSH

The National Bank for Financing Infrastructure Development (NaBFID) expects to end FY24 with final loan sanctions of ₹1 lakh crore and disbursements of close to ₹60,000 crore, according to MD and CEO Rajkiran Rai.

The development finance institution, which made its first loan disbursement in December 2022, has so far disbursed about ₹15,000 crore to projects mostly in the road and energy (primarily renewable energy and transmission projects) sectors, he said.

“Our in-principle sanctions are at about ₹55,000 crore. Final sanctions, as of today, are at around ₹25,000 crore. Out of this, close to ₹15,000 crore has been disbursed,” Rai said.

The NaBFID chief observed that the DFI is also examining a few proposals in the solar and wind energy segments, city gas distribution, data centres, and telecom towers, as well as multi-modal transport projects that are coming up and will absorb a lot of investment.

“With the economic activity picking up, ports should also see further developments,” he said.

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By March 2026, Rai expects NaBFID’s sanctions to swell to ₹3 lakh crore.

Besides the ₹10,000 crore that the DFI raised recently via unsecured non-convertible debt securities, it plans to mop up about ₹30,000 crore via such bond issuances in the second half of the year.

Including the aforementioned bond issuances and bank credit lines, NaBFID is eyeing resource mobilisation of ₹50,000–52,000 crore in FY24.

“We are planning some Tier-I and Tier-II issuances next year. This will increase our capital, which can be leveraged further. We want to crowd-in investment in the infrastructure space,” Rai said.

Last week, NaBFID raised ₹10,000 crore via the issuance of listed 10-year bonds in its maiden issuance at an annualized coupon rate of 7.43 per cent.

Published on June 20, 2023 14:36

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