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India New Issue-NHAI unit to issue 10-year bonds - bankers

Kitco Media
By Reuters
Published:
Updated:
Reuters
MUMBAI, March 8 (Reuters) - DME Development, a unit of the National Highways Authority of India (NHAI), is planning to raise at least 6 billion rupees ($73.20 million) through bonds maturing in 10 years, three merchant bankers said on Wednesday. The company has invited bids from bankers and investors this Friday. Bidding will take place on the National Stock Exchange's electronic platform between 11:00 a.m. IST and 12:00 p.m. IST, they said.


The bonds are rated AAA by CRISIL and CARE Ratings and the issue will be settled on Tuesday.


The issue also has a greenshoe option to retain an additional subscription of 24 billion rupees.


Reuters reported in February that DME Development was likely to tap the bond market with bonds maturing in 10 years in March. DME Development is a special-purpose vehicle created by the NHAI in August 2020 for the construction of the greenfield Delhi-Mumbai Expressway that passes through the states of Delhi, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra. Earlier this month, DME Development raised 36.84 billion rupees through bonds maturing in 10 years at a semi-annual coupon of 7.82%. ($1 = 81.9680 Indian rupees) (Reporting by Bhakti Tambe and Dharamraj Dhutia; Editing by Janane Venkatraman)

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