NHAI to raise upto Rs 10,000 cr through NCDs

The issue size under tranche-1 aggregates to Rs 5,000 crore with an option to retain over-subscription upto Rs 10,000 crore.

These highway bonds are being issued in two series viz. tranche 1 series 1 and tranche 1 series 2 having a tenure of 10 years and 15 years respectively. The coupon rate for the tranche 1 series 1 and tranche 1 series 2 would be 8.20% per annum and 8.30% per annum respectively. The interest is payable annually on October 1st of each year.

The tranche 1 bonds proposed to be issued have been rated as �CRISIL AAA/Stable� by CRISIL, 'CARE AAA' by CARE and �FITCH AAA (IND) with stable outlook� by FITCH. The rating of the bonds issued by CRISIL and CARE indicate highest degree of safety regarding timely servicing of financial obligations.

Such instruments carry lowest credit risk. The rating of the bonds by FITCH indicates highest rating assigned in its national rating scale. This rating is assigned to the "best" credit risk relative to all other issuers or issues in the country. The bonds offered through this Issue are proposed to be listed on the BSE and the NSE.

The issue shall remain open from December 28, 2011 to January 11, 2012 with an option to close earlier or extend upto a maximum period of 30 days at the discretion of the Board of NHAI subject to necessary approvals, by intimating through an advertisement issued in a leading national daily. However, the issue shall remain open for a minimum of 3 days. The funds raised through this issue will be used for part financing of the various projects being implemented by NHAI.

SBI Capital Markets Limited and A.K. Capital Services Limited are the Lead Managers to the issue. Additionally, ICICI Securities Limited and Kotak Mahindra Capital Company Limited are also involved for marketing of the issue.