Archive · 15 Aug 2025
NHIT Plans ₹9,000 Crore Bond Placement for Refinancing
Imagine a company that manages highways in India, called NHIT.
They borrowed a lot of money from banks, but now they want to borrow money in a different way, by selling bonds.
They plan to raise ₹9,000 crore to pay back some of the bank loans.
They are hoping to get better interest rates than they currently have to reduce costs.
They might sell bonds that don't pay interest until they mature, and are issued at a discount.
Experts suggest this might be happening because interest rates are low and they are trying to take advantage of that to save money.
NHIT plans to raise ₹9,000 crore through private bond placements to refinance debt and reduce borrowing costs.
The fundraise is expected to begin in the next two to three months, capitalizing on falling yields.
NHIT currently has approximately ₹21,700 crore in outstanding debt with an 8% blended borrowing cost.
The trust may issue zero-coupon bonds with staggered maturities to avoid all coming due simultaneously.
The plans are at an early stage and subject to change based on market conditions.
- Who
- National Highways Infra Trust (NHIT).
- What
- NHIT plans to raise ₹9,000 crore through private bond placements.
- When
- The fundraise is planned to begin in the coming two to three months.
- Where
- India.
- Why
- To refinance debt and reduce borrowing costs.
Concerns about Zero-Coupon Bonds
Potential Benefits of Zero-Coupon Bonds
ZCB investment
Concerns about Zero-Coupon Bonds
Banks avoid investing in zero coupon bonds (ZCBs).
Potential Benefits of Zero-Coupon Bonds
Top-rated companies are exploring ZCB refinancing because of the low-rate climate.
Investor interest
Concerns about Zero-Coupon Bonds
Insurers may remain wary of long-term ZCBs even from top-notch credits.
Potential Benefits of Zero-Coupon Bonds
ZCBs are considered by public sector companies.
- Planned Fundraise
- ₹9,000 crore
- Outstanding Debt
- ₹21,700 crore
- Current Borrowing Cost
- Around 8% per annum
- Possible Bond Type
- Zero-coupon bonds
- NHIT Established
- 2020
- NHIT Sponsor
- National Highway Authority of India (NHAI)