NHAI Announces Public Issue of Tax Free, Secured Redeemable Non-Convertible Bonds

Issue Opens on 15 January 2013

National Highways Authority of India (NHAI), a statutory body incorporated under the NHAI Act, 1988, has announced the public issue of tax free, secured redeemable, non convertible bonds in the nature of debentures of the face value of Rs. 1,000 each (Bonds), for an amount of Rs. 1,00,000 lakhs with an option to retain oversubscription up to Rs. 2,69,840 lakhs aggregating to a total of Rs. 3,69,840 lakhs. The proposed Bonds have been rated CRISIL AAA/Stable by CRISIL; CARE AAA by CARE and BWR AAA with Stable Outlook by Brickwork. The issue opens on January 15, 2014 and closes on February 5, 2014 with an option of early closure. The Bonds are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.

The Bonds are offered with two different Series, i.e. with tenor of 10 years and 15 years. The coupon rate for Individual and HUF investors applying for an amount up to Rs. 10 lakhs shall be 8.52% and 8.75% for the Bonds with tenor of 10 years and 15 years, respectively. For all other investors, the coupon rate shall be 8.27% and 8.50%, respectively. As Bonds carry tax benefits under section 10(15) (iv) (h) of the Income Tax Act, 1961, as amended, the income earned by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income.

The minimum application size is 5 Bonds (Rs. 5,000) individually or collectively across both Series of Bonds and in multiples of 1 Bond (Rs. 1,000) thereafter.

The Allotment shall be made on first come first serve basis determined on the basis of date of upload of Applications on the electronic Application platform of the stock exchanges. The Allotment of the Bonds shall be in dematerialized form as well as physical form. However, trading in Bonds shall be compulsorily in dematerialised form.

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