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ON: Process for funding Bharatmala
The National Highway Authority of India (NHAI) is set to issue Rs.10,000 crore from its maiden public taxable bonds for retail investors, proceeds from which will finance Bharatmala project across the country.
The new bond issue is expected in two weeks, banking and financial sources said on 21 Nov 2018.
Financial market sources expect bonds to be offered at 8.50% to 9% interest across various tenors – 3-year, 5-Y and 10-Y maturities.
Banking sources said NHAI has already sold Rs.29,000 crore worth of bonds to Indian financial institutions such as State Bank of India.
The triple-A rated NHAI has appointed five banks to help with the bond issue.
Overall, NHAI aims to raise Rs.62,000-crore for this financial year (FY’19). It is also planning to issue rupee-dominated masala bonds to overseas investors.
Bharatmala project is for developing 60,000-km of new highways for Rs.6.92 lakh crore. fiinews.com
