Nabard plans to raise up to Rs
40,000 crore through long-term bonds
National Bank for Agriculture and Rural Development (Nabard) is planning to
raise up to Rs 40,000 crore through long-term bonds.
money raised will be mostly used for rural development programmes run by the
government. Nabard, the government-owned financial institution, mostly raises
funds through short- and medium-term instruments. It looks for long-duration
instruments when working on behalf of the government, bond market dealers said.
agency ICRA has assigned AAA rating to these bonds. Broadly, these rating are
valid for one year. The financial institution, with quasi-sovereign status, has
maintained a competitive and diversified funding profile supported by low-cost
rural infrastructure development fund deposits.