NABARD Secures ₹6,779 Crore Via 3-Year Bonds at 7.01% Yield

National Bank for Agriculture and Rural Development (NABARD) on Tuesday raised ₹6,779 crore through a 3-year bond, as per news reports.  

The securities were priced at a cut-off yield of 7.01%. The issue was conducted amid relatively high government bond yields across the curve. 

Short-Term AAA Paper Draws Interest 

The bonds received steady demand from investors looking at highly rated issuances in the shorter segment.  

As per news reports, Market activity in this part of the curve has remained stable despite the rise in yields. The pricing of the issue reflected this continuing demand for short-tenor, top-rated paper. 

REC and IIFL Tap Debt Market 

REC Ltd is scheduled to raise up to ₹3,000 crore through bonds on Wednesday. The offering includes a base size of ₹500 crore and a green-shoe option of ₹2,500 crore. The tenor of the bonds is 1 year, 11 months and 29 days. 

IIFL Finance has also opened a public issue of secured non-convertible debentures to raise up to ₹2,000 crore. The issue has a base size of ₹500 crore and a green-shoe option of ₹1,500 crore. It includes 9 series with maturities of 2, 3 and 5 years, carrying coupon rates between 8.7% and 9%. The offer will close on 4 March. 

Corporate Bond Activity in FY26 

Fundraising through the corporate bond market has remained subdued in FY26. Higher yields, linked to ongoing geopolitical tensions, have weighed on issuer activity. 

Between April and December, companies raised ₹6.76 trillion through corporate bonds, down 6% from ₹7.19 trillion in the same period last year.  

In calendar year 2025, issuances stood at ₹10.08 trillion, nearly unchanged from ₹10.09 trillion in 2024. State-owned issuers together raised over ₹20,000 crore in the market last week. 

Read More: Indian Government Approves Pay and Pension Revision for Insurance Staff, NABARD, and RBI Retirees! 

Conclusion 

The three-year bond issue comes as several public sector and non-banking issuers access the debt market. Corporate bond mobilisation in FY26 has seen a year-on-year decline. 

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