NaBFID Scores Big with Debut USD Bond Issuance Raising $750 Million
NaBFID has completed its debut US dollar bond issuance, raising $750 million through a 10-year benchmark bond priced at 105 basis points over US Treasuries. This results in a coupon of 6.122 per cent.
The bond is listed on both GIFT IFSC exchanges, India INX and NSE International Exchange (NSE-IX). The issuance is the first drawdown under NaBFID's $4 billion Global Medium-Term Note (GMTN) programme and is rated BBB+ by CareEdge. It matures September 30, 2029.
US investors account for 55 per cent of demand, followed by Europe, Middle East and Africa at 30 per cent, and Asia at 15 per cent.
The principal's currency risk is fully hedged through a Reserve Bank of India swap for five years. The bond carries a fixed coupon, locking in borrowing costs for the tenor.