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The Inland Waterways Authority of India (IWAI) has raised ₹660 crore through bonds and the proceeds will be utilised exclusively to develop National Waterways, the government said on Friday.
“The IWAI has raised ₹660 crore as ‘GOI Fully Serviced Bonds’ The resources raised by way of bonds are in addition to the budgetary support from the Government of India. The Centre had taken a decision to enable IWAI to raise ₹660 crore through GOI Fully Serviced Bonds in 2017-18,” Ministry of Shipping said in a statement.
The IWAI had engaged arrangers, credit rating agencies, registrars and trustees prior to raising the bonds. Both CRISIL and CARE rated the proposed instrument of IWAI as “AAA: STABLE“.
“The e-bidding for raising the bonds was organised on 11th October, 2017 on the BSE Portal with the issue size of ₹300 crore and Green Shoe option of ₹360 crore,” the statement said.
It said the issue was oversubscribed and the entire amount of ₹660 crore has been raised in single tranche at a coupon rate of 7.47 per cent.
“The proceeds from the Bonds are intended to be utilised by IWAI exclusively for capital expenditure for development of National Waterways (NWs) under National Waterway Act, 2016 during 2017-18,” the statement said.
The Parliament recently had given nod to declare 106 rivers across the country as National Waterways in addition to the existing 5.
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