Nabard to raise Rs 3,500 cr through 10, 15-yr tax-free bonds

Tuesday, Mar 8, 2016,16:48 IST By Metrovaartha A A A

Mumbai | National Bank for Agriculture and Rural Development (Nabard) will raise Rs 3,500 crore through 10 and 15 year tax-free non-convertible bonds.

The bonds will offer coupons of 7.29 per cent and 7.64 per cent respectively to retail investors, Nabard said in a statement here today. Nearly 60 per cent of the total issue size has been reserved for retail customers. For qualified institutional buyers (QIB), corporates and high net worth individuals, the coupon has been set at 7.04 per cent and 7.35 per cent for 10 and 15-year bonds respectively. The proceeds will be mainly utilised for direct lending to certain irrigation projects in the country and refinancing irrigation projects, Nabard said.

The issue, which will open on March 9 and close on March 14, has an option for early closure or extension. The interest on bonds, to be listed on BSE, will be paid annually. The bonds have been assigned a rating of AAA/Stable by Crisil and AAA/Stable by India Ratings.