NaBFID targets ₹15,000-cr infra spend in current quarter

The National Bank for Financing Infrastructure and Development (NaBFID), a new development finance institution (DFI), plans to advance ₹15,000 crore to infrastructure projects in the current quarter. The company's CEO, Rajkiran Rai, stated that NaBFID already has a loan pipeline worth ₹50,000 crore, which is expected to increase in the next fiscal year. The DFI aims to differ from traditional infrastructure finance institutions by playing the role of a market maker, providing project advisory, and advocating for policy changes. NaBFID plans to go beyond traditional sectors such as roads and power and focus on developing and financing sectors such as social infrastructure, data centers, and environmentally, socially, and governance (ESG) sectors.

The company plans to raise funds primarily through the issuance of bonds and aims to raise between ₹5,000 to ₹10,000 crore in the next few months. The government has infused ₹20,000 crore capital into the company, which is enough to increase its loan book to ₹4 lakh crore. The institution has a multifaceted role in infrastructure financing and plays a role in developing local markets and helping institutions to raise funds.