NHAI InvIT Plans To Raise Rs 1,400 Crore Via 17-Year Bond Issue Next Week
NHAI InvIT's bond issue has a base size of Rs 700 crore and a greenshoe option of Rs 700 crore.
National Highway Infra Trust, the infrastructure investment trust of National Highways Authority of India, plans to raise up to Rs 1,400 crore through bonds maturing in 17 years, three persons privy to the development told NDTV Profit.
The issue has a base size of Rs 700 crore and a greenshoe option of Rs 700 crore. The company has invited bids for the same on Dec. 10. The bidding will take place on the National Stock Exchange's electronic platform from 11 am to 12 pm.
The company aims to raise funds through separately transferable redeemable principal part bonds, where the principal and coupon payments are stripped, and sold separately to investors who want a fixed income on a particular due date.
The bonds, rated AAA by India Ratings & Research, will be allotted on Dec 11.
On Monday, NDTV Profit exclusively reported that the infrastructure investment trust is looking to raise up to Rs 10,000 crore through equity and debt.
Last month, CARE Ratings assigned AAA rating to NHAI InvIT's bonds, which will be used for refinancing existing term debt and will not result in additional increase in total debt.
The last time National Highways Infra Trust had tapped the debt market was in October 2022, when it raised Rs 1,500 crore through a public issue of bonds. The trust had raised funds through bonds maturing in 13 years, 18 years and 25 years, that had a separately transferable and redeemable principal parts structure.
The infrastructure investment trust is sponsored by NHAI, which monetises national highway projects through the toll-operate-transfer, infrastructure investment trusts, and securitisation routes.
Under the toll-operate-transfer model, NHAI gives toll collection rights and operation and maintenance obligations to private companies in return for an upfront payment of lump sum concession fees.
In the InvIT route, assets are transferred to a trust, which is kind of a collective investment scheme similar to a mutual fund. An InvIT enables direct investment from individual and institutional investors into infrastructure projects to earn a portion of the income as return.
