NHAI to issue tax free, secured, redeemable non-convertible bonds

New Delhi, December 16, 2015

The National Highways Authority of India (NHAI) plans to raise funds through a public issue of tax free, secured, redeemable non-convertible bonds with face value of Rs 1,000 each for an amount of Rs 1000 crore, with an option to retain oversubscription of upto additional Rs. 9000 crore, agggregating to a total of Rs. 10,000 crore.
The issue will open tomorrow and is scheduled to close on December 31, with an option for early closure or extension as may be decided by the Board of Members or the Bond Committee.
The funds raised through this issue will be utilized for the part financing of various on-going projects under the NHDP and also various special projects and future projects to be awarded under different modes, a press release from NHAI said.
The release said the interest income on bonds waexempted from levy of income tax in the hands of the investors.
The coupon rate for Category I, Category II and Category III investors, that is Qualified Institutional Buyers, Corporates and High Net worth Individuals will be 7.14% and 7.35% for tenures of 10 years and 15 years, respectively, in Series IA and series IIA.  
The coupon rate for Category IV investors, that is Retail Individual Investors, will be 7.39% in Series IB and 7.60% in Series IIB for tenures of 10 years and 15 years, respectively.
The bonds are proposed to be listed on the BSE Limited and NSE.
The bonds proposed to be issued have been rated ‘IND AAA’ by IRRPL, 'CARE AAA’ by CARE, , "[ICRA] AAA” by ICRA and ‘CRISIL AAA/Stable’ by CRISIL.
SBI Capital Markets Ltd, A.K. Capital Services Ltd, Edelweiss Financial Services Ltd, ICICI Securities Ltd and Axis Capital Ltd are the Lead Managers to the issue. Karvy Computer Share Private Limited is the Registrar to the Issue while SBICAP Trustee Company Limited is the Bond Trustee to the issue.
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