NHAI Investment Trust to raise Rs 1,500 crore via issuance of bonds; details here
Given the state of the market at this time, it is anticipated that these bonds will be offered to retail investors at a coupon rate of roughly 7 per cent
Representational image. PTI
The National Highways Infra Trust (NHIT), the infrastructure investment trust of the National Highways Authority of India (NHAI), has petitioned the Securities and Exchange Board of India (SEBI) in order to raise 1,500 crores through issuing bonds. According to NHIT, there could be up to 15 million non-convertible debentures (NCDs) involved in the issue. The NCDs must be listed within six working days from the date of closing, and the minimum subscription for a public debenture issue is 75 per cent of the basic issue size.
Retail and institutional investors will also be able to participate in the Rs 1500-crore bonds that are slated to be issued. Given the state of the market at this time, it is anticipated that these bonds will be offered to retail investors at a coupon rate of roughly 7 per cent.
The infrastructure investment trust indicated that it intended to use the net proceeds of the offering for general corporate operations, the repayment of any NHIT bridge loans, and the infusion of debt into an NHIT special purpose vehicle (SPV). According to NHIT, the additional cash will help the SPVs fulfil their commitments under the concession agreements and enable the project SPV to get appropriate rights under the concession agreement.
JM Financial Limited, A.K. Capital Services Limited, ICICI Securities Limited, State Bank of India (SBI) Capital Markets Limited, and Trust Investment Advisors Private Limited are the lead managers for the bonds issue. The credit rating companies are CARE Ratings Limited and India Ratings and Research Private Limited. KFin Technologies Limited is the issue’s authorised registrar.
In the final week of September, the NHAI sold three roadway assets to the NHIT. It plans to generate 3,800 crores through the entire transaction by a combination of bond issuance, private placement, and bank loans during the second phase of asset monetisation.
The Ministry of Road, Transport, and Highways tweeted on Monday that this strategy has been carried out and that the InvIT has raised Rs. 1,217 crore from institutional investors. Once the NHAI’s investment is approved by the Securities and Exchange Board of India (SEBI), it is anticipated that another Rs 213 crores will be added to this total.
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