NATIONAL BANK FOR FINANCING INFRASTRUCTURE AND
DEVELOPMENT - ECONOMY
News: NaBFID raises ₹10,000 crore via listed bond issue
What is in the news?
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Recently, The National
Bank for Financing Infrastructure and Development (NaBFID) said it has raised ₹10,000
crore by issuing listed bonds in its maiden issuance.
Key takeaways from the news:
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The infrastructure bonds
were oversubscribed by approximately 4.7 times, against the base issue of
₹5,000 crore.
What is a listed bond?
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Listed bonds are a form
of listed debt securities used by companies to raise debt from the public.
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They are financial
instruments that trade on an exchange like the National Stock Exchange (NSE) or
Bombay Stock Exchange (BSE).
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These bonds are offered
to the public by issue of an offer document.
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They are regulated by SEBI (Issue and Listing of
Non-Convertible Securities) Regulations, 2021.
National Bank for Financing Infrastructure and
Development:
About:
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It is a specialized Development Finance Institution in
India.
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It was established as a statutory body under the National Bank
for Financing Infrastructure and Development Act 2021.
Year:
2021
Objectives:
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Addressing the gaps in
long-term non-recourse finance for infrastructure development,
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Strengthening the
development of bonds and derivatives markets in India,
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Sustainably boosting the
country’s economy.
Regulation:
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It is regulated and
supervised by the RBI as an All India
Financial Institution.
Functions:
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Extending
loans and advances for infrastructure projects.
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Attract private sector investment
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Facilitation
of foreign investors in infrastructure
projects.
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Provide consultancy services to infrastructure
financing.