Days after JP Morgan announced the inclusion of government bonds in its emerging market (EM) bond index, a host of banks and other financial institutions (FIs) are set to tap the debt market on Monday and Tuesday. They plan to raise Rs 18,000 crore by issuing non-convertible debentures (NCDs) and bonds.
National Bank for Agriculture and Rural Development (Nabard) plans to raise up to Rs 3,000 crore via five-year social impact bonds on Tuesday, the first of its kind in India.
Market participants anticipate strong investor demand for Nabard’s social sector bond. This is primarily due to the tenure, which is expected to resonate with mutual fund houses as well as long-term investors, including insurance companies and pension fund houses.