The NCDs must be listed within 6 (six) business days of the closing of the issue and the minimum subscription for a public offering of Notes is 75% of the base issue amount. Each of the three STRPPs that make up each NCD would be given its own trading lot and the allocation would be made in a dematerialized manner, the press release further added.
The National Highways Infrastructure Trust (NHIT), an infrastructure investment trust registered under the InvIT Regulations and sponsored by NHAI (an autonomous government agency of the Indian government), has published its draft prospectus for a public offering of secured, rated, listed, redeemable, non-convertible bonds.
“The issue will be for an aggregate amount of up to Rs 1,500 crore consisting of up to 15,000,000 NCDs (consisting of 15,000,000 STRPP A, 15,000,000 STRPP B and 15,000,000 STRPP C). The three STRPP have different denominations, different maturities and are intended to be redeemable (i) at face value and (ii) staggered redeemables,” NHIT said in a press release.
It is proposed that the net proceeds be used for general corporate purposes, repayment of NHIT’s bridge loan facility (if used, if any) and contribution of debt to NHIT’s project SPV. The cash injection will help the SPVs to fulfill their contractual obligations and allow the project SPV to obtain the necessary concession rights.
The NCDs must be listed within six business days of the closing date and the minimum subscription for a public offering of Notes is 75 percent of the base issue amount.
Each of the three STRPPs that make up each NCD would be given its own trading lot and the allocation would be made in a dematerialized manner, the press release further added.
NHIT currently owns, operates and maintains a portfolio of 5 initial toll roads totaling approximately 389 km in the states of Gujarat, Rajasthan, Telangana and Karnataka and intends to toll 3 additional toll roads totaling 246 km in the states of Telangana , operate and maintain , Maharashtra, Uttar Pradesh and Madhya Pradesh under the Toll Operate and Transfer model designed by NHAI.
For the April-June quarter, the company’s registered capital was Rs 6,011.52 crore, representing 595.20 million units.
“Project SPV has the right to collect tolls for periods of 20 or 30 years as per the relevant concession agreement. The National Highway Authority of India (NHAI) has a consistent track record of growth and operational performance.
It has been entrusted with the National Highways Development Project which, along with smaller projects, has given it 50,329km of National Highways for development, maintenance and management,” added NHIT.
Among the many parties who may apply to issue are individual investors, mutual funds, financial institutions, provident and pension funds, and high net worth individuals (HNIs).
The underwriters of the offering are JM Financial Limited, AK Capital Services Ltd, ICICI Securities Ltd, SBI Capital Markets Ltd and Trust Investment Advisors Private Ltd.
The rating agencies appointed are CARE Ratings Ltd and India Ratings and Research Private Ltd. The registrar for the issue is KFin Technologies Ltd.