The National Bank for and (Nabard) is planning to raise up to Rs 40,000 crore through long-term bonds.

The money raised will be mostly used for programmes run by the government. Nabard, the government-owned financial institution, mostly raises funds through short- and medium-term instruments. It looks for long-duration instruments when working on behalf of the government, bond market dealers said.

Rating agency ICRA has assigned “AAA” rating to these bonds. Broadly, these rating are valid for one year. The financial institution, with quasi-sovereign status, has maintained a competitive and diversified funding profile supported by low-cost rural infrastructure development fund deposits.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link