NHAI bond issue to raise up to Rs 3,698 cr opens tomorrow

National Highways Authority of India (NHAI) has announced that its tax-free bonds issue to raise up to Rs 3,698.40 crore will open tomorrow.
NHAI 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 for an amount of Rs 1,000 crore.
These bonds have an option to retain over-subscription up to Rs 2,698.40 crore aggregating to a total of Rs 3,698.40 crore, NHAI said in a statement today.
The issue opens on January 15, 2014 and closes on February 5, 2014 with an option of early closure.

These bonds, which would be offered with two different series -- with tenor of 10 years and 15 years -- are proposed to be listed on both the BSE and the NSE, the statement said.
The coupon rate for individual and HUF (Hindu Undivided Family) investors applying for an amount up to Rs 10 lakh shall be 8.52 per cent and 8.75 per cent for the bonds with tenor of 10 years and 15 years, respectively.
The income earned by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income, it added.

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.