NaBFID Launches Credit Enhancement Facility

Mumbai, Sep 18 (PTI) The National Bank for Financing Infrastructure and Development (NaBFID) on Thursday launched the partial credit enhancement (PCE) for help in project finance.

The PCE, which was announced by Finance Minister Nirmala Sitharaman in the FY26 Budget presented in February, is aimed at strengthening the infrastructure bond market and improving access to long-term capital for infrastructure projects, NaBFID's Managing Director and Chief Executive Rajkiran Rai said.


"India's growth aspirations are deeply tied to the strength of its infrastructure backbone. As we prepare for the coming decades, the convergence of long-term capital, technology, and urban innovation will determine the pace of transformation," Rai said.

The PCE instrument launched by the premier infrastructure finance entity can help give higher comfort to an investor for subscribing to a bond.

Speaking at an event to mark the launch of the PCE, Pension Fund Regulatory and Development Authority Chairman Sivasubramanian Ramann said the instrument can help push both pension funds and insurers to invest in infrastructure projects.