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NHAI Bonds List Strongly At 4.41% Premium

  • The bonds received strong demand from institutional investors and high net-worth individuals, with total subscriptions reaching 2.5 times more than the issue size of Rs10,000 crore.Two bonds issued by the National Highway Authority of India on Wednesday listed at a 4.11 per cent premium, said G. Suresh, the organization’s General Manager (Finance).The bonds are tax-exempt and come with maturity of 10 and 15 years.NHAI issued the bonds to close the gap between what the company gets in allocations from the central government and what its actual expenses are. Currently, NHAI gets about Rs12,000 crore from the government while its expenses on pre-execution costs, land acquisition and viability gap funding is Rs 19,000 crore.
  • The Rs 1000 face-value bonds, which are tax-exempt, received subscriptions worth Rs25,000 crore while the total issue size was Rs10,000 crore.Cash refunds to subscribers are also close to completion, Suresh said.The bonds carry a coupon of 8.20 per cent for the 10-year maturity and 8.30 per cent for the 15-year maturity, and have been awarded a AAA-Stable grade by rating agency Crisil.The strongest demand for the bonds came from institutional investors, who subscribed 6.1 times, while high net-worth individual subscribed 2.7 times over.

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