Mumbai: The National Bank for Agriculture and Rural Development (NABARD) is planning to raise its first external commercial borrowing in FY26, a top official said on Tuesday.
NABARD Chairman Shaji KV told reporters here that the institution has received approval from the Reserve Bank of India for such an issuance and is now preparing for it.
“We have got the permission and have started working on it,” Shaji said while speaking on the sidelines of the annual feedback event here.
Shaji said the bank is keen to launch the issue in FY26 itself, though he did not mention any specific timeline or amount to be raised.
The proceeds from the issue will be used for climate change-related financing activities for which funds are available at a discount, he said, adding that almost the entire rural portfolio of the lender will fall under this category.
He said merchant bankers are yet to be appointed to raise funds, and the final cost of borrowing will play a key role in determining the final outcome of the ECB plans.
A representative office for ECB will first be set up in GIFT City, he said. If activity picks up, Nabard may also open a full-fledged branch at the International Financial Services Centre, he added.
When asked why they have not made any issuances in the domestic market despite having a borrowing calendar, Shaji pointed to the rise in yields and indicated that the high cost has hindered them from accessing the markets.
