Public Issue of Tax Free Secured Redeemable Non-Convertible Bonds by NATIONAL HIGHWAYS AUTHORITY OF INDIA
See term sheet for details
NHAI -Tax Free Bonds_Tranche-II_Feb16-Term Sheet
Salient Features:
- Earn upto 7.69% Tax Free=11.74% pre Tax by MMR (For detailed Table see below)
- Issue is opening on Wednesday, 24th February 2016 and closes on Tuesday, 1st March 2016.
- Risk Free fixed income
- Better return than FD’s
- Tax Free income
Other Details
| Issuer | NATIONAL HIGHWAYS AUTHORITY OF INDIA (“NHAI”) |
| Instrument | Tax Free Secured Redeemable Non-Convertible Bonds in the nature of debentures having Tax Benefits under Section 10 (15)(iv)(h) of the Income Tax Act, 1961. |
| Issuance Schedule | The Issue shall be open from 24th February 2016 till 1st March 2016 |
| Issue Size | Rs.500 crores with an option to retain over-subscription upto Rs.2,800 crores, aggregating upto Rs.3,300 crores. |
| Issue Price | Rs.1,000/- for each Bond |
| Min Application Size | Rs.5,000/- ( 5 Bonds ) (individually or collectively, across all Series of Bonds |
| Thereafter in multiples of | Rs.1000/- ( 1 Bond ) |
| Credit Rating | “AAA” from IRRPL, CARE, ICRA and “AAA/Stable” from CRISIL |
| Tranche – II details | ||||
| Category | I – (‘QIBs’) | II –(‘Corporates’) | III – (‘HNIs’) | IV – (‘RIIs’) |
| Qualified Institutional Buyers | Corporates | High Networth Individuals | Retail Individual Investors | |
| Category Allocation (%) | 20% of the overall Issue Size of
Rs.3,300 Crs. |
20% of the overall Issue Size of
Rs.3,300 Crs. |
20% of the overall Issue Size of Rs.3,300 Crs. (Above Rs.10 Lakhs) | 40% of the overall Issue Size of Rs.3,300 Crs. (upto Rs.10 Lakhs) |
| Category Allocation (Rs.) | 660 Crs. | 660 Crs. | 660 Crs. | 1,320 Crs |
| Tenor | 10 Years | 15 Years | ||
| Interest Frequency | Annual | Annual | ||
| Options/Series of Bonds | Series I A | Series I B | Series II A | Series II B |
| Coupon Rate/Annulised Yield for Category I, II & III Applicants (% p.a.) | 7.04% | — | 7.39% | — |
| Coupon Rate/Annulised Yield for Category IV Applicants (% p.a.) |
— | 7.29% | — | 7.69% |
For additional information & risk factors please refer to the Prospectus
Given below is the Table showing Pre-Tax Yield:
| Individuals | Retail | Pre- Tax Yield | |||
| Coupon | 10.30% | 20.60% | 30.90% | 34.50% | |
| 10 Years | 7.29% | 8.13% | 9.18% | 10.55% | 11.13% |
| 15 Years | 7.69% | 8.57% | 9.69% | 11.13% | 11.74% |
| Individuals | HNI | Pre- Tax Yield | |||
| Coupon | 10.30% | 20.60% | 30.90% | 34.50% | |
| 10 Years | 7.04% | 7.85% | 8.87% | 10.19% | 10.75% |
| 15 Years | 7.39% | 8.24% | 9.31% | 10.69% | 11.28% |
| Firms / Corporates | Pre- Tax Yield | ||||
| Coupon | 20.01% | 30.90% | 33.00% | 34.50% | |
| 10 Years | 7.04% | 8.80% | 10.19% | 10.51% | 10.75% |
| 15 Years | 7.39% | 9.24% | 10.69% | 11.03% | 11.28% |
