Indian Infrastructure Bank to start disbursing loans in fiscal year 23

MUMBAI (Reuters) РIndia’s development finance institution, the National Infrastructure Development Bank, may start disbursing loans from this financial year, said managing director and CEO Rajkiran. Lai G said Wednesday.

Lai said financial institutions are also considering raising funds by issuing long-term bonds in the domestic market this fiscal year with maturities of 10 to 25 years, but did not disclose quantities or timelines. I didn’t.

Rai said there was no immediate pressure to raise funds and the institution is well capitalized with an initial capital of 200 billion rupees ($2.42 billion) and a grant of 50 billion rupees.

The National Bank for Financial Infrastructure Development expects the rating of bonds issued by December.

The agency said it expected strong appetite for long-term bonds, especially from pension funds and insurance companies, with those investors expected to invest in long-term bonds worth 2.5 trillion rupees ($30.22 billion) next year. He added that he was considering

Government-owned funding agencies must reward investors for taking longer-term risk, so they ensure the risk pricing of bonds is done right, Rai said. Agencies create their own benchmarks for bond pricing.

Rai did not disclose a funding target, as the agency is still finalizing its business plan and evaluating its project pipeline.

The Government of India has announced the development of this financial institution in its February 2021 budget to finance infrastructure projects of national importance. Rai said he was appointed MD in August and the agency is currently building a team.

The agency is looking to finance greenfield and brownfield projects and is also working with NIIF Infrastructure Finance on some projects.

($1 = 82.7140 Indian Rupee)

Reported by Bhakti Tambe.Editing by Josie Kao

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