Ennore Port launches Rs 500-cr tax-free bond sale

State-run Ennore Port today hit the market with a bond issue, aiming to raise Rs 500 crore from retail and institutional investors.

The port will be issuing tax-free secured, redeemable, non-convertible bonds of face value of Rs 1,000, it said in a statement.

Several state-run ports had come out with bond issues in the latter part of last fiscal, trying to leverage a provision which allows tax-free bond raising by infrastructure companies.

However, due to a variety of reasons, including overlapping of dates towards the end of the fiscal, a majority of the issues could not raise the targeted sums.
 

For the institutional and high net worth investors, the bonds carry a coupon size of up to 8.75 per cent per annum for the 20-year offering, while the same for retail investors has been kept higher at 9 per cent, it said.

The proceeds will be used for capital dredging projects at the port, augmenting rail and road connectivity to the port and construction of a third coal berth. The third coal berth will be used by the Tamil Nadu Generation and Distribution Corporation, it said.

The issue will be open for subscription from tomorrow till March 14. SPA Capital Advisors, AK Capital Services, Karvy Investor Services and RR Investors Capital Services are the lead managers.