NHAI initiates process to tie up Rs 40 billion through a bond issue

The SBI offered to fund the entire requirement based on one month Marginal Cost of funds-based Lending rate of 7.9%, even less than LIC's 8.51%

The National Highways Authority of India (NHAI) has started the process to raise about Rs 40 billion through a bond issue in the domestic market, the process for which has already begun with the selection of lead bankers, including Axis Bank and SBI Caps.

“All the necessary clearances, including approval from the Department of Economic Affairs and Ministry of Road Transport and Highways, for the bond issue are in place and the ticket size would be big,” a senior official said. The authority, which has the approval to raise Rs 100 billion in the current financial year, plans to raise only