Issue Highlights:

Issue Opens	Wednesday, February 24, 2016
Issue Closes	Tuesday, March 01, 2016
Issue Size	Rs. 50,000 lakhs with an option to retain over subscription up to Rs. 2,80,000.00 lakhs aggregating upto Rs. 3,30,000.00 lakhs.
Min Application	5 Bonds (Rs. 5,000) (individually or collectively, across all series of bonds) and in the multiple of one bond (Rs. 1,000) thereafter
Issue Price	Rs. 1,000 per bond
Face Value	Rs. 1,000 per bond
Nature of Bonds	Tax-free secured redeemable and non-convertible
Rating	"IND AAA" by IRRPL, "CARE AAA" by CARE , "[ICRA] AAA" by ICRA and "CRISIL AAA/Stable"
Lead Managers	Edelweiss Financial Services Ltd., Axis Capital Ltd., ICICI Securities Ltd., SBI Capital Markets Ltd. and A.K. Capital services Ltd.
Registrar	Karvy Computershare Private Ltd.
Allotment	First Come First Serve Basis
Listing On	BSE and NSE
Issue Break up*	QIB: 20%; Corporate : 20%; HNI: 20%; Retail: 40%
Retail Client Application Limit	Max Rs. 10 Lakhs or Less

Business overview

The National Highways Authority of India (NHAI), an autonomous body under the Ministry of Road Transport & Highways, GoI, established under Section 3 of the NHAI Act on June 15, 1989 and having a perpetual succession and common seal. NHAI was constituted by an act of Parliament, the National Highways Authority of India Act, 1988. It is responsible for the development, maintenance and management of National Highways entrusted to it and for matters connected or incidental thereto. The Authority was operationalized in February, 1995 with the appointment of full time Chairman and other Members.

It was established with a vision to meet the nation's need for the provision and maintenance of National Highways network to global standards and to meet user's expectations in the most time bound and cost effective manner, within the strategic policy framework set by the Government of India and thus promote economic well being asnd quality of life of the people.

Highlights of Tax Free Bonds

• Interest from these Bonds do not form part of total income as per provisions of Section 10(15) (iv)(h) of Income Tax Act, 1961 read along with Section 14A(1) of the Income Tax Act.
• Since the interest income on the bonds is exempt, no tax deduction at source ("TDS") is required. However interest on application money would be liable for TDS as well as would be subject to tax as per present tax laws.

Objects for issue

The objects of NHAI as specified in NHAI Act permits it to undertake its existing activities as well as the activities for which the funds are being raised through the Issue. NHAI intends to deploy the Issue proceeds towards part financing of the various projects being implemented by NHAI under the NHDP and other National Highway projects as approved by the GoI.

The funds raised through Bonds will be utilised for the part financing of various on-going projects under the NHDP and also various special projects and future projects to be awarded under different modes.

The funds raised through tax free bonds will be incurred towards the following expenditure:

• On projects of 3066.92 Kms length consisting of 35 projects awarded during 2014-15,
• Additional ancillary work already awarded up to March 31, 2014 and also
• Other EPC projects, Hybrid EPC Projects awarded/ to be awarded in 2015-16
• The funds raised through the said Bonds will also be utilised for land acquisition of BoT Projects, EPC Projects and also towards VGF (viability gap funding) Grants.
• Any other activity to achieve the mandate of NHAI i.e. to develop, maintain and manage the National Highways entrusted to NHAI.

Terms of Series of Bonds

Coupon Rates for Category I, II and III*
Series of Bonds*	Tranche II Series IA	Tranche II Series IIA
Coupon Rate (%) per annum	7.04%	7.39%
Annualized Yield (%) per annum	7.04%	7.39%
Coupon Rates for Category IV*
Series of Bonds*	Tranche II Series IB	Tranche II Series IIB
Coupon Rate (%) per annum	7.29%	7.68%
Annualized Yield (%) per annum	7.29%	7.69%
Options	Option 1	Option 2
Tenure of Bonds	10 years	15 years
Maturity/Redemption Date	10 years from Deemed Date of Allotment	15 years from Deemed Date of Allotment

Click here for the detailed Tranche prospectus

Category I Includes - QIBs | Category II Includes - Corporates | Category III Includes - HNIs | Category IV Includes - Retail Individual Investors