Varanasi-Aurangabad Highway Expansion raises Rs 2,630 crore through dollar-denominated bonds

The bonds, carrying a 5.9 per cent interest rate and maturing in nearly nine years, will be used for refinancing and capital expenditure. The bond issuance received strong interest from global investors, with the order book reaching Rs 27,500 crore, reflecting an oversubscription of approximately 10.4 times. As many as 144 investors from all important international markets participated in the issuance.

Deutsche Bank acted as the sole global coordinator for the transaction. Commenting on the strong investor response and Deutsche Bank’s coordination, Sameer Gupta, Head of India & Southeast Asia, DCM, said, “The overwhelming response from global investors underscores both credit quality of the Issuer and the increasing appetite of international capital for infrastructure assets in India.”

ROADIS, which is responsible for managing highway assets in India, undertook the VAH project. VAH company is fully owned by ROADIS Group, the road investment platform of PSP Investments, a Canadian pension investment manager.

José Antonio Labarra, CEO, ROADIS, said, “India is a principal key market for us, and this successful bond issuance underscores our unwavering long-term commitment to the country. The financing of VAH showcases our capacity to find innovative financing solutions.”

VAH is responsible for the six-lane expansion, operations, and maintenance of the 192 km highway between Varanasi and Aurangabad. It operates under the design, build, finance, operate, and transfer (DBFOT) toll model as part of NHDP Phase-V.