Indian State-run Companies NaBFID, Power Grid, and HUDCO Plan $1 Billion Bonds

Indian state-run companies, National Bank for Financing Infrastructure and Development (NaBFID), Power Grid Corporation of India, and Housing and Urban Development Corporation (HUDCO), are preparing to launch bond offerings over the coming days, targeting a combined $1 billion (₹90 billion), according to news reports.

Details of Upcoming Bond Issuances

The proposed bond sales will include medium- to long-tenor notes ranging from 5 to 15 years. NaBFID plans to raise ₹55 billion through 5-year and 15-year bonds, while HUDCO is expected to issue 5-year bonds worth ₹15-20 billion.

Power Grid Corporation is likely to tap the 10-year segment of the yield curve to raise around ₹20 billion. The combined fundraising from these three issuances is expected to total ₹90 billion, or approximately $1 billion at current exchange rates.

Bond Yield Trends and Market Conditions

Corporate bond yields in India have declined in recent sessions, largely due to reduced supply from top-rated state-run issuers and a fall in government bond yields. Market participants attribute the decline to suspected bond purchases by the Reserve Bank of India (RBI), which have improved liquidity and supported investor demand.

According to data from LSEG, AAA-rated short-term bond yields have eased by more than 15 basis points since the start of October, while longer-tenor yields have fallen by over 10 basis points. The easing in yields has created a favourable environment for fresh issuance, allowing state-run entities to raise funds at relatively lower borrowing costs.

Recent Benchmark Issuance

The new offerings come shortly after NTPC Green Energy raised ₹15 billion last week through 10-year bonds at a coupon rate of 7.01%, which was more than 10 basis points below prevailing AAA-rated bond yields. The successful pricing of NTPC Green Energy’s issue has further strengthened market confidence and set a benchmark for upcoming state-backed issuances.

Read More: SEBI and RBI Discussing Introduction of Corporate Bond Index Derivatives.

Conclusion

NaBFID, Power Grid Corporation, and HUDCO are collectively set to raise around ₹90 billion through bond issuances across 5, 10, and 15 year maturities, as market conditions remain favourable with easing yields and strong investor demand. The transactions follow a successful NTPC Green Energy issue, underscoring the sustained appetite for long-term infrastructure and public-sector debt instruments.

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