NHAI to raise Rs 8,000 crore to lower fund cost
India’s biggest roads owner is raising Rs 8,000 crore in private debt papers that could have repayments set even three decades later, choosing negotiated deals over public auctions to lower its borrowing costs.
On Wednesday, the National Highway Authority of India (NHAI) garnered Rs 5,500 crore by selling domestic bonds with 10-year maturity on the exchange traded platform. The road builder offered 8.27% coupon on those papers.
The interest rate came about 10 basis points lower than the usual levels. “The borrowing cost prompted the company to take the private route instead of public issuance,” said an executive from a large bond house.
