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India's National Bank for Financing Infrastructure Development (NaBFID) is looking to raise 50 billion rupees($606.38 million) through its maiden bond issue in the April-June quarter, a senior official said on Friday.

The funds will likely be raised through long-term infrastructure bonds, managing director and chief executive officer Rajkiran Rai G said on Friday.

NaBFID is a development finance institution set up in 2021 to fund infrastructure projects in the country.

The government-backed institution is currently in the process of securing a credit rating for the proposed bonds and expects that to be in place by early March, said Rai, adding that it was simultaneously working with merchant bankers to work out details, which includes setting tenor and coupon rate.

Rai, who was appointed MD in August last year, said that NaBFID currently has a loan pipeline between 400 billion rupees and 500 billion rupees.

Loan sanctions worth around 50 billion rupees in the form of in-principle approvals are in place, while credit worth five billion rupees has already been disbursed in December, he said.

While the lender will raise funds from the market as needed, the agency was well-capitalised with an initial capital of 200 billion rupees and grants of 50 billion rupees from the government, Rai said.

He also said there were no plans to raise funds via green bonds currently.

"As project financing picks up, we will take a call," said Rai.

($1 = 82.4560 Indian rupees)

(Reporting by Siddhi Nayak; Editing by Nivedita Bhattacharjee)