National Highways Authority of India (NHAI) NCD (National Highways Authority of India NHAI NCD) Detail

The National Highways Authority of India (NHAI) is an autonomous agency of the Government of India, responsible for management of a network of over 70,000 km of National Highways in India. It is a nodal agency of the Ministry of Road Transport and Highways. Its functions include survey, development, maintenance and management of the NH and inter alia to construct offices or workshops, to establish and maintain hotels, restaurants and rest rooms at or near the highways entrusted to it, to regulate and control plying of vehicles, to develop and provide consultancy and construction services and to collect fees for services and benefits.

About the Issue

NATIONAL HIGHWAYS AUTHORITY OF INDIA (NHAI) is coming out with a tax free bonds issue on 15.01.14. The bonds having face value of Rs. 1000 are to be applied for a minimum subscription of 5 bonds and in multiples of 1 bond thereof, thereafter. The core issue is for Rs. 1000 crore with a green shoe option to retain oversubscription of Rs. 2698.40 crore thus taking the total size of the issue to Rs. 3698.40 crore.

These bonds carries coupon rate of 8.25% to 8.75% and having tenure of 10 years and 15 years. For retail investors (category IV) it offers 8.52% for 10 years and 8.75% for 15 years. These bonds are rated CRISIL/AAA Stable, CARE/AAA and BWR/AAA Stable, indicating highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.