NABFID, HUDCO, and SIDBI Secure ₹12,000 Crore via Debt Market Issues

State-backed financial institutions returned to the debt capital market with sizeable issuances, benefiting from softer rates and surplus liquidity conditions. 

₹11,861.5 Crore Raised Against ₹13,500 Crore Plan  

Small Industries Development Bank of India, National Bank for Financing Infrastructure and Development and Housing and Urban Development Corporation collectively accepted ₹11,861.5 crore against a notified ₹13,500 crore. 

SIDBI raised ₹7,866 crore through bonds maturing in slightly over 3 years at a coupon of 7.22%, compared with a planned ₹8,000 crore comprising ₹2,000 crore base issue and ₹6,000 crore green-shoe option.  

NaBFID mobilised ₹2,553.5 crore via 10-year bonds at 7.45% against a ₹4,000 crore plan including ₹1,000 crore base issue and ₹3,000 crore green-shoe. Hudco secured ₹1,442 crore through perpetual bonds at 7.87% versus a ₹1,500 crore plan comprising ₹500 crore base issue and ₹1,000 crore green-shoe, with a call option after 10 years. 

Perpetual bonds do not carry a maturity date, and issuers continue to pay interest unless the bonds are redeemed through a call option. 

Liquidity Conditions and Market Backdrop 

Despite recent activity, corporate bond fundraising in FY26 has remained subdued. During April-December 2025-26, issuances fell 6% Y-o-Y to ₹6.76 trillion compared with ₹7.19 trillion. In calendar year 2025, corporate bond issuances stood at ₹10.08 trillion versus ₹10.09 trillion in 2024. 

Upcoming Issuances and Market View 

As per news reports, National Bank for Agriculture and Rural Development is expected to raise ₹7,000 crore through 3-year bonds, while Power Finance Corporation plans to mobilise ₹4,000 crore across 2-year and 5-year tranches. 

Read More: Debt Mutual Funds See ₹74,827 Crore Inflows in January After December Outflows! 

Conclusion 

Recent bond issuances by SIDBI, NaBFID and Hudco indicate selective investor demand supported by liquidity surplus, even as the broader corporate bond market remains sensitive to supply conditions. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.