Home / Markets / Stock Markets /  NHAI trust to raise 1,500 cr via bonds

NEW DELHI : The National Highways Infra Trust (NHIT), the infrastructure investment trust of the National Highways Authority of India (NHAI), has approached the Securities and Exchange Board of India (Sebi) to raise 1,500 crore by issuing bonds.

“National Highways Infrastructure Trust, a registered infrastructure investment trust under the InvIT Regulations, sponsored by NHAI, has filed its draft prospectus for a public issue of secured, rated, listed, redeemable, non-convertible debentures (NCDs)," NHIT said on Thursday.

The issue will comprise up to 15 million NCDs, according to NHIT.

The minimum subscription for the public issue of debentures is 75% of its base issue size and the NCDs shall be listed within six working days from the data of closing, NHIT said.

The infrastructure investment trust plans to utilize the net proceeds from the issue to infuse debt into a special purpose vehicle (SPV) of NHIT, repay any bridge loan of NHIT, and for general corporate purposes, it said.

The infusion of funds will help the SPVs meet their obligations under the concession agreements and allow the project SPV to acquire necessary rights under the concession agreement, according to NHIT.

NCDs are a financial instrument used by companies to raise long-term capital.

This is done through a public issue.

Lead managers for the bonds issue are JM Financial Limited, A.K. Capital Services Limited, ICICI Securities Limited, State Bank of India (SBI) Capital Markets Limited, and Trust Investment Advisors Private Limited.

CARE Ratings Limited and India Ratings and Research Private Limited are the credit rating agencies.

The registrar to the issue is KFin Technologies Limited, NHIT said.

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