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The much-awaited proposal of NHAI鈥檚 Bharatmala Bond is all set to make a debut in October this year. The very first retail bond that is designed to raise funds for the highways under the Bharatmala Program of the Ministry of Road Transport and Highways and the National Highways Authority of India will be presented to the national domestic market in October. The Bharatmala Bond is expected to raise around Rs 3000 Crores.
Minister of Road Transport and Highways, Shri Nitin Gadkari said in a recent meeting that he will be travelling to the United States to raise funds. With NHAI鈥檚 AAA rating, it will be easier to garner participation of potential investors. He will be travelling to Mumbai in October to launch the Bharatmala Bond in the domestic market. Apart from attracting foreign funds, Shri Gadkari also the native people to invest in the bond. He aims in making the highway projects a success by money invested by the people of India.
Expected to raise approximately Rs 3000 Crores, the ministry will be cranting a 8.5% return on investment. Shri Gadkari said that while banks offer a 6% interest for retirement purposes, NHAI will be providing 8.5% for the same per annum over a period of 5 years, paid out monthly.
The finance minister had earlier cleared the National Highways Authority of India for raising funds worth Rs 70000 Crores via infrastructure bonds. The estimated Rs 3000 Crores to be raised via the Bharatmala Bond is a part of the Rs 70000 crore and will be used to implement and execute the highway projects under the Bharatmala Yojana.
Around one-and-a-half years ago, the finance ministry had cleared NHAI to raise funds Rs 70,000 crore through infrastructure bonds. This Rs 3,000 crore will be part of the overall Rs 70#7#000 crore that is to be raised to implement and execute the Bharatmala Programme. Earlier this month, NHAI and the State Bank of India (SBI) signed a Memorandum of Understanding (MoU) for an unsecured loan of Rs 25,000 crore. This is the largest funding secured by NHAI in a single tranche. Observers and analysts have shown concern over this unsecured loan stating that it may even result in a downgrade ting.