According to an official, in the next three years, the National Highways Infra Trust will have 1,500 km of operational road assets, which is about 1.5 times more than it is now. starting a trust 1,500 crore non-convertible debentures (NCDs) issued next week.
The trust currently manages 636 km of operational national highways in eight sections, and over the next three years, it will manage 1,500 km.
National Highways Authority will contribute the most (27% of the total share) to the Center 6 lakh crore National Asset Monetization Scheme, which includes these invitation allocations.
In first installment of asset monetization, NHAI, which is the sponsor of ask over Last November, the trust was allotted five operational roads, which run in 389 km – the Abu Road-Swaroopganj section; Chittorgarh-Kota and Chittorgarh bypass sections; Kothakota Bypass-Kurnool section; Maharashtra/Karnataka Border (Kagal)-Belgaum Section; and Palanpur/Khemana-Abu Road section.
The trust has paid for these 7,500 crore to NHAI in concession fee for a period of 30 years.
In second installmentIn June, the trust was given three more properties running 247 km- Agra Bypass; Borkhedi-Kelapur-Telangana state border; and Shivpuri-Jhansi section, at concessional fee for 20 years 2,850 crores.
declaring NCD issueWhich starts on October 17 and ends on November 7, said Suresh Goel, CEO, National Highways Infra Investment Managers, “In the next three years, we will have over 860 km of highways.”
The trust is providing loan of 24 years tenor which will be listed with an annual yield of 8.05% and semi-annual yield of 7.90%.
Goyal said the trust will use the proceeds to repay It has taken a bridge loan of Rs 15,000 crore from Bank of Maharashtra to pay the concession fee to NHAI. The trust also has an undo credit line. 850 crore from Bank of Maharashtra.
Of the 63 lakh km of roads in the country, only 2% or 1.364 lakh km are operated by the National Highways Authority of India. However, according to the Union Minister for Roads and Highways Nitin Gadkari, these national highways transport 86% of all passengers and 68% of all goods.
According to Matthew George, chief financial officer at National Highway Infra Investment Managers, the base size of the issue is 750 crores and option to retain over subscription 750 crores. He also noted that it is the only investible asset with assured returns that are protected from inflationary pressures.
Goyal also claimed that the National Highways Infra Trust has already taken up 8,000 crore from its initial InvIT sale, with notable investors including the Canadian Pension Plan Investment Board and the Ontario Teachers Pension Fund of Canada, each purchasing a maximum allowed amount of 25%.
non convertible debentures
non convertible debentures (NCDs) are fixed-income securities usually issued in the form of public offerings by highly rated companies for the creation of long-term capital gains. As compared to convertible debentures, they offer somewhat higher interest rates.
NCDs come under the category of debt. They cannot be converted into stocks or equities. NCDs have a stipulated maturity date, and the principal along with the interest can be paid monthly, quarterly or annually, depending on the specified tenure.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.