Nabard, the government-owned financial institution, mostly raises funds through short- and medium-term instruments
The money raised will be mostly used for rural development
programmes run by the government. Nabard, the government-owned financial institution, mostly raises funds through short- and medium-term instruments. It looks for long-duration instruments when working on behalf of the government, bond market dealers said.
Rating agency ICRA has assigned “AAA” rating to these bonds. Broadly, these rating are valid for one year. The financial institution, with quasi-sovereign status, has maintained a competitive and diversified funding profile supported by low-cost rural infrastructure development fund deposits.