NaBFID in talks with World Bank to fund infra projects

The collaboration will boost creditworthiness, lower borrowing costs for infrastructure firm

- Subhash Narayan & Rhik Kundu

The National Bank for Financing Infrastructure and Development (NaBFID) is in advanced talks with the World Bank to help reduce the cost of financing infrastructure projects, a top official said.

The two entities will share credit risk and enhance ratings of corporate bond offerings. The collaboration will leverage credit enhancement facilities to boost creditworthiness and lower borrowing costs for infrastructure firms.

"We are talking to the World Bank to share a portion of credit risk associated with our partial credit enhancement (PCE) facility for the infrastructure sector. We have the mandate to guarantee up to 20% of corporate bonds that will help these issues to mobilize funds at a lower cost for infrastructure development," NaBFID deputy managing director Samuel Joseph Jebaraj said over the phone.