NHAI to raise funds through Public Issue of Tax Free Bonds ,Issue closes on 1st march 2016

By | February 25, 2016
(Last Updated On: February 25, 2016)

NHAI to raise funds through Public Issue of Tax Free, Secured, Redeemable, Non-Convertible Bonds

Issue opens today, closure on 1st March 2016 or earlier

NHAI plans to raise funds through Public Issue of Tax Free, Secured, Redeemable Non-Convertible Bonds with Face Value of Rs 1,000 each for an amount of Rs 500 crore with an option to retain over subscription of upto additional Rs 2800 crore, aggregating upto a total of Rs. 3300 crore.

The interest income on bonds is exempted from levy of income tax in the hands of the investors as per the notification no. 59/2015 F. No. 178/27/2015-ITA-I dated July 6, 2015 issued by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India.

The coupon rate for Category I, Category II and Category III investors i.e. Qualified Institutional Buyers, Corporates and High Net worth Individuals will be 7.04% and 7.39% for tenures of 10 years and 15 years respectively in Series IA and series IIA. The coupon rate for Category IV investors i.e. Retail Individual Investors will be 7.29% and 7.69% for tenures of 10 years and 15 years respectively in Series IB and series IIB. The Issue opens on today, that is February 24,2016 and is scheduled to close on March 01,2016 with an option for early closure or extension as may be decided by the Board of Members or the Bond Committee.

The bonds are proposed to be listed on the BSE Limited and NSE and 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.

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.

Source Ministry of Road Transport & Highways 24-February, 2016

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