Buoyed by the success of raising Rs 3,000 crore through masala bonds at the London Stock Exchange (LSE), the National Highways Authority of India (NHAI) will approach global rating agencies -Moody’s and Standard & Poor’s -for international ratings.
NHAI, an autonomous government agency that is responsible for management of more than 70,000 kms of national highways, aims to complete the process before it hits overseas markets to raise Rs 10,000 crore in medium term notes (MTNs). MTN is a debt note that usually matures in 5-10 years. This can be issued on a fixed or floating coupon. Getting itself rated by global rating agencies will enable NHAI to broaden its reach in global markets, help it get better terms and strengthen its acceptance among global investors. Masala bonds are rupee denominated bonds issued to overseas buyers.
Confirming the move, NHAI chairman Y S Malik told TOI, “We will start the process soon. We had a good experience in launching the masala bond. There is good appetite for this. Overseas investors are keen to invest in the highway sector.“ He also said that NHAI will again tap the masala bond route as and when the need arises.
