Varanasi Aurangabad Highway Tollway raises $316.3 mn through dollar bond

Varanasi Aurangabad Highway Tollway raises $316.3 mn through dollar bond

Varanasi Aurangabad NH-2 Tollway Private Limited (VAH) on Wednesday said it has raised USD 316.3 million (about Rs 2,750 crore) by issuing dollar-denominated bonds.

VAH, a Roadis entity, is responsible for the operations and maintenance of the 192 km Varanasi-Aurangabad highway and its expansion to six lanes.

According to the company statement, the bonds carry a coupon rate of 5.90 per cent and will mature in about nine years.

The funds raised will be used for refinancing and capital expenditure, it added.

The bond offering received an overwhelming response from global investors, with the order book peaking at over USD 3.3 billion, reflecting an oversubscription of approximately 10.4 times, the statement said.

The issue saw participation from 144 investors across key international markets, underscoring the strong investor confidence in VAH's financial position and long-term growth prospects, it added.

The stretch, which enhances connectivity between Uttar Pradesh and Bihar, is one of the three highway projects under the build-operate-transfer (BoT) model managed by Roadis.

"India is a principal key market for us, and this successful bond issuance underscores our unwavering long-term commitment to the country. The financing of VAH showcases our capacity to find innovative financing solutions," Roadis CEO Jose Antonio Labarra said.

Deutsche Bank acted as the sole global coordinator for the transaction and as joint book runners, along with HSBC and Societe Generale.

VAH is a concession responsible for the expansion to six lanes, operations and maintenance of the Varanasi-Aurangabad section of NH-2 from km 786 to km 978.4 (length 192.4 km) in Uttar Pradesh and Bihar on design, build, finance, operate and transfer (DBFOT) toll basis under NHDP Phase-V. VANTPL is fully controlled by Roadis.