The zero coupon bond or Bhavishya Nirman bond of National Bank for Agriculture and Rural Development (Nabard) has mobilised Rs 3,000 crore in April-January against the targeted Rs 2,600 crore.
“There are very few similar long-term instruments in the market which give equal yields of 8.62 per cent to both institutional and retail investors. There is a daily inflow of Rs 10-15 crore in the kitty and we expect another Rs 1,000 crore by March,” said P Satish, chief general manager, Nabard.
In order to moderate the inflow, Nabard has brought down the investible limit from Rs 3 crore to Rs 1 crore effective from February 1, 2009.
The issue price of the 10-year bond is Rs 8,750 and with a face value of Rs 20,000. Satish added that the bond issuance may be closed for the last week of March for accounting purposes. The zero coupon bond has collected Rs 1,800 crore in 2007-08 as last year the equity market was attractive and there were other variety of instruments.
Similarly, Nabard Rural Bond, 5-year bond with a minimum investment of Rs 5,000, has collected Rs 15 crore in the financial year so far against a target of Rs 20 crore.
Senior officials at Nabard said that Nabard Rural bond may close in the next financial year as the performance is not in line with expectations.
