India New Issue-NHAI unit likely to raise around 30 bln rupees via 10-yr bonds soon - bankers

CARE Ratings

12/10/2023 11:30

By Dharamraj Dhutia
       MUMBAI, Oct 12 (Reuters) - DME Development, a unit of
the National Highways Authority of India (NHAI), is looking to
tap the bond market for the first time this financial year, two
merchant bankers said on Thursday.
    The company aims to raise around 30 billion rupees ($360.74
million) through the sale of 10-year bonds and may look to
invite bids for the issue later this month, the bankers said.
    The bonds are rated AAA by Crisil and CARE Ratings.
    DME is yet to make an official announcement, and NHAI did
not immediately respond to a Reuters email seeking comment.
    DME 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.
    In March, DME raised 23.55 billion rupees through 10-year
bonds at a semi-annual coupon of 7.89%, while in February it
raised 36.84 billion rupees through 10-year bonds at a
semi-annual coupon of 7.82%.
   
    ($1 = 83.1628 Indian rupees)

 (Reporting by Dharamraj Dhutia; Editing by Sherry
Jacob-Phillips)
 ((Dharamraj.dhutia@tr.com))