NHAI InvIT files for ₹1,500 crore NCD issue

“National Highways Infrastructure Trust, a registered infrastructure investment trust under the InvIT Regulations, sponsored by National Highway Authority of India (NHAI), has filed its draft prospectus for a public issue of secured, rated, listed, redeemable, non-convertible debentures (NCDs),” the release said.

The issue will be for an amount aggregating upto ₹1,500 crore comprising 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 will be of different face value, different maturity and shall be redeemable at par; and in a staggered manner, it added..

As of the quarter ended June 30, 2022, the unit capital stood at ₹6,011.5 crore comprising of 595.20 million units.

The minimum subscription for public issue of debentures is 75% of its base issue size and the NCDs shall be listed within six working days from the issue closing date. Each NCD comprising of three STRPPs would be allotted in a dematerialized form and each STRPP would be a trading lot.

The net proceeds are proposed to be utilized towards 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 infusion of funds will help the SPVs meet the obligations under the concession agreements and allow the Project SPV to acquire necessary rights under the concession agreement

Non-convertible debentures (NCDs) are a financial instrument that is used by companies to raise long-term capital. This is done through a public issue.

Lead managers for the issue are JM Financial Limited, A.K. Capital Services Limited, ICICI Securities Limited, SBI Capital Markets Limited, and Trust Investment Advisors Private Limited. The credit rating agencies appointed are CARE Ratings Limited and India Ratings and Research Private Limited. Registrar to the Issue is KFin Technologies Limited, the release said.