New Delhi, March 25 -- India's youngest infrastructure financier, National Bank for Financing Infrastructure and Development (NaBFID), plans to diversify into equity financing and blended debt.

In the initial phase, the company will have only an equity fund of $500 million, Rajkiran Rai G., managing director of NaBFID, told Mint.

A second fund, still on the drawing board, is a blended finance fund of similar size, Rai said in an interview at the Mumbai headquarters of NaBFID, which was founded in 2021. The company was initially set up as a development finance institution to support long-term projects.

"We are (also) likely to launch an alternative investment fund, mainly for the equity side, in the next six months," Rai said.

NaBFID's...