NHAI sells long tenure bonds, borrows Rs 5 000 cr from EPFO for Bharatmala road project

NHAI-LogoBy Accommodation Times Bureau

Mumbai

To help government’s Bharatmala road project, National Highway Authority of India (NHAI) sells long tenure bonds to country’s biggest debt buyer Employees’ Provident Fund Organisation (EPFO) and borrowed Rs 5,000 crore to aid the government’s road project.

These bonds will mature in 15 years, but those securities have a call option after 10 years, allowing the borrower to end the liability well before the scheduled redemption. The top-rated public sector company has sold corporate bonds that carry a coupon of 7.64%.

“Our portfolio managers are under direction to use the best of the investment opportunities whenever available,” according to VP Joy, the central provident fund commissioner, told, “We ensure our proposed rates of return across rate cycles through prudent investments.”





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