National Highways Infrastructure Trust (NHIT), a registered infrastructure investment trust under InvIT regulations sponsored by NHAI, is looking to raise up to ₹1,500 crore through Non-Convertible Debentures (NCD). The NCD issue will open on Monday and close on November 7 with an option of early closure.
7.90% coupon rate
The NCD issue will offer a coupon rate of 7.90 per cent p.a. payable semi-annually and a yield of 8.05 per cent per annum for NCD holders in all categories. The base issue size is of ₹750 crore with an option to retain oversubscription up to ₹750 crore, aggregating up to ₹1,500 crore.
The minimum application size would be ₹10,000 (i.e. 10 NCDs) and will be open to retail investors, institutional investors, and non-institutional investors. "The investors currently comprise 50 per cent foreign and 50 per cent domestic players and they will look at when the market is right for becoming a publicly listed InvIT," said Suresh Goyal, MD &CEO, of National Highways Infra Investment managers.
The proceeds are proposed to be utilized towards the infusion of debt into the Project SPV of NHIT, repayment of the bridge loan facility of NHIT (availed, if any), and general corporate purposes.
The NCDs are being issued in the form of Separately Transferable Redeemable Principal Parts (STRPPs) A, B, and C with tenors of 13, 18, and 25 years.
The NCDs are proposed to be listed on BSE and NSE with BSE as the Designated Stock Exchange for the Issue.