Nabard aims to undertake maiden ECB in FY26: Chairman

The National Bank for Agriculture and Rural Development (Nabard) is looking to raise its maiden external commercial borrowing in FY26, a top official said on Tuesday.

The entity has received the Reserve Bank approval to undertake such an issuance and is now gearing up for it, its chairman Shaji KV told reporters here.

''We have the permission in place and have started work on it,'' Shaji said, speaking on the sidelines of the annual Fibac event here.

The bank is keen to undertake the issuance in FY26 itself, Shaji said, choosing not to point out to an exact timeline or quantum to be raised.

Proceeds of the issue will be deployed for climate change-related financing activities for which funds are available at a discount, he said, adding that nearly the entire rural portfolio of the lender will qualify under the category.

Stating that it is yet to appoint merchant bankers to undertake the fundraise, he said the final costs of borrowing will play an important role in determining the final outcome of the ECB plans.

It will first set up a representative office in the GIFT City to undertake the ECB, he said, adding that if the activity increases, Nabard may also open a full-fledged branch in the international financial services centre.

When asked for the reasons why it has not done any issuances in the domestic market despite having a borrowing calendar, Shaji pointed to the hardening of yields, hinting that the higher costs impeded it from accessing the markets.

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