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NHAI Investment Trust to raise ₹1,500 crore via bonds

The National Highways Infra Trust (NHIT), the infrastructure investment trust of the National Highways Authority of India (NHAI), will hit the market soon to raise ₹1,500 crore and another ₹5,000 crore by the end of this financial year.

Officials told ET it will raise ₹1,500 crore via issuance of bonds carrying a coupon rate of about 7%.

The NHIT had acquired three highway assets from the NHAI in the last week of September. In all it is seeking to raise ₹3,800 crore for this transaction through a mix of bond issuance, private placement, and bank loan during the second tranche of asset monetisation.

Going ahead with this plan, the Ministry of Road, Transport and Highways tweeted on Monday that the InvIT has raised ₹ 1,217 crore from its institional investors. It is believed that ₹213 crores will be added to this amount once Securities and Exchange Board of India (SEBI) approves the investment that NHAI is making.

The bonds worth ₹1,500 crore that are due to be floated will allow participation from retail and institutional investors.

“These bonds are expected to be issued at a coupon rate of around 7% to retail investors considering the present market conditions,” a senior official told ET on condition of anonymity.

The three newly acquired assets were added to five existing ones.

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