It can retain oversubscription of Rs9000 crore. The NHAI bonds proposed to be issued have been rated ‘IND AAA’ by IRRPL, 'CARE AAA’ by CARE, "[ICRA] AAA” by ICRA and ‘CRISIL AAA/Stable’ by CRISIL, according to a press release from NHAI
National Highways Authority of India (NHAI) plans to raise funds through public issue of tax-free, secured, redeemable non-convertible bonds with the face value of Rs1,000 for an amount of Rs1,000 crore with an option to retain oversubscription of up to additional Rs9,000 crore aggregating up to a total of Rs10,000 crore, according to a press release from the company.
The interest income on bonds is exempted from levy of income tax in the hands of the investors as per the notification issued by the Central Board of Direct Taxes.
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 7.14% and 7.35% 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 7.39% in Series IB and 7.60% in Series IIB for tenures of 10 years and 15 years respectively (i.e. Retail Individual Investors are being offered 0.25% more than other category of investors for bonds of corresponding tenure).
The bonds are proposed to be listed on the BSE Limited and NSE. The Bonds proposed to be issued have been rated ‘IND AAA’ by IRRPL, 'CARE AAA’ by CARE, "[ICRA] AAA” by ICRA and ‘CRISIL AAA/Stable’ by CRISIL.
The issue opens on 17 December 2015 and is scheduled to close on 31 December 2015.