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
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%
