The funds raised through the issue will be utilised for part financing of various on-going projects under the NHDP.
National Highways Authority of India (NHAI) on Tuesday said it plans to raise up to Rs 3,300 crore through public issue of non-convertible bonds.
The issue will open on February 24, 2016 and is scheduled to close on March 1, 2016 with an option for early closure.
The funds raised through the issue will be utilised for part financing of various on-going projects under the NHDP and also various special projects and future projects to be awarded under different modes, NHAI said.
"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 up to additional Rs 2800 crore aggregating upto a total of Rs 3300 crore," it said in a statement.
The interest income on bonds is exempted from levy of income tax in the hands of the investors as per a notification issued by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, last year.
"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," NHAI said.
The coupon rate for Category IV investors ie 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, it added.
The issue opens on February 24, 2016 and is scheduled to close on March 1, 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 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, 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 Ltd is the Bond Trustee to the issue.
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