NHAI to raise up to Rs 1,000 cr via bonds starting tomorrow

The National Highway Authority of India (NHAI) plans to raise funds up to Rs 1,000 crore through public issue of tax free, secured redeemable non convertible bonds. The issue will open tomorrow and is scheduled to close on December 31, 2015 with an option of early closure, it said in a statement. "The funds raised through this issue will be utilised for the part financing of various ongoing projects under the NHDP and also various special projects and future projects to be awarded under different modes", it added.

The bonds will have a face value of Rs 1,000 each for an amount of Rs 1,000 crore with an option to retain oversubscription of up to additional Rs 9,000 crore aggregating up to a total of Rs 10,000 crore, NHAI said. "The interest income on bonds is exempted from levy of income tax in the hands of the investors as per notification ...," the statement said. The coupon rate for Category I, Category II and Category III investors - Qualified Institutional Buyers, Corporates and High Net worth Individuals - will be 7.14 percent and 7.35 percent for tenures of 10 years and 15 years in series IA and series IIA respectively.

The coupon rate for Category IV investors - Retail Individual Investors - will be 7.39 percent in series IB and 7.60 percent in series IIB for tenures of 10 years and 15 years, respectively, it added. NHAI said the retail individual investors are being offered 0.25 percent more than other category of investors for bonds of corresponding tenure. The bonds are proposed to be listed on the BSE Limited and NSE.

SBI Capital Markets, A K Capital Services, Edelweiss Financial Services, ICICI Securities and Axis Capital are the lead managers to the issue. Karvy Computer Share Pvt Ltd is the registrar to the issue while SBICAP Trustee Company is the bond trustee to the issue.