NHB to raise Rs. 2,100 crore through issue of tax-free bonds

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 NHB to raise Rs. 2,100 crore through issue of tax-free bonds
National Housing Bank (NHB) will raise a total of Rs. 2,100 crore through the issue of tax-free bonds. The finance ministry has allowed the state-owned bank to raise a total of Rs. 3000 crore through tax-free bonds, of which the institution plans to raise Rs. 2,100 crore via public issue of tax-free bonds and remaining through private placement.

The secured redeemable non-convertible debentures each carrying a face value of Rs. 5000 will remain open for subscription from December 30, 2013 to January 31, 2014. The coupon-rate on NHB tax-free bonds is linked to the interest rate on G-securities.

Karvy ComputerShare Private Limited is the registrar to the issue of tax-free bonds while the lead managers to the issue are Axis Capital Limited, Edelweiss Financial Services Limited and RR Investors Capital Services Private Limited.

The tax-free bonds will be listed on the National Stock Exchange (NSE). Credit Rating agencies including CRISIL, CARE and ICRA has accorded AAA rating to the issue indicating highest safety and low credit risk. Through the issue, the institution plans to mop up long-term resources for catering to the housing sector in the country.

Another government-run entity National Highway Authority of India (NHAI) will hit the market with its issue of tax-free bonds later in mid-January. Through the issue, NHAI plans to raise a capital amounting to Rs. 3,700 crore.

GoodReturns.in

Read more about: tax free bonds, nhb, nhai, coupon rate
Story first published: Friday, December 27, 2013, 15:46 [IST]
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