 "illustration-tax-free bonds")
The National Highways Authority of India will raise Rs 3,300 crore by selling tax-free bonds. The funds raised through this issue will be utilised for the part-financing of various ongoing projects under the National Highways Development Project and also various special projects and future projects to be awarded under different modes.
The issue opened on Wednesday and is scheduled to close on March 1, with an option for early closure or extension, as may be decided by the board of members or the bond committee.
According to a government press release, the tax-free, secured, redeemable non-convertible bonds will have a face value of Rs 1,000 each for an amount of Rs 500 crore, with an option to retain over-subscription of up to additional Rs 2,800 crore, aggregating up to a total of Rs 3,300 crore. The interest income on bonds is exempted from levy of income tax.
The coupon rate for Category-I, -II and -III investors, that is, qualified institutional buyers, corporates, and high net worth (rich) individuals will be 7.04 and 7.39 per cent for tenures of 10 years and 15 years, respectively, in Series-IA and Series-IIA. The coupon rate for Category-IV investors (small) will be 7.29 and 7.69 per cent for 10 years and 15 years, respectively, in Series-IB and Series-IIB.
The bonds are proposed to be listed on the BSE and National Stock Exchange and have been rated AAA. SBI Capital Markets, AK Capital Services, Edelweiss Financial Services, ICICI Securities, and Axis Capital are the lead managers of the issue. Karvy Computer Share Private is the registrar of the issue; SBICAP Trustee Company is the bond trustee of the issue.
The issue opened on Wednesday and is scheduled to close on March 1, with an option for early closure or extension, as may be decided by the board of members or the bond committee.
According to a government press release, the tax-free, secured, redeemable non-convertible bonds will have a face value of Rs 1,000 each for an amount of Rs 500 crore, with an option to retain over-subscription of up to additional Rs 2,800 crore, aggregating up to a total of Rs 3,300 crore. The interest income on bonds is exempted from levy of income tax.
The coupon rate for Category-I, -II and -III investors, that is, qualified institutional buyers, corporates, and high net worth (rich) individuals will be 7.04 and 7.39 per cent for tenures of 10 years and 15 years, respectively, in Series-IA and Series-IIA. The coupon rate for Category-IV investors (small) will be 7.29 and 7.69 per cent for 10 years and 15 years, respectively, in Series-IB and Series-IIB.
The bonds are proposed to be listed on the BSE and National Stock Exchange and have been rated AAA. SBI Capital Markets, AK Capital Services, Edelweiss Financial Services, ICICI Securities, and Axis Capital are the lead managers of the issue. Karvy Computer Share Private is the registrar of the issue; SBICAP Trustee Company is the bond trustee of the issue.
