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IWAI raises Rs 660 cr through bonds

New Delhi, Oct 13 (IANS) The Inland Waterways Authority of India (IWAI) has raised Rs 660 crore as "GOI Fully Serviced Bonds", which will be in addition to the budgetary support from the government, the Shipping Ministry said on Friday.

The proceeds from the Bonds are intended to be utilised by the IWAI exclusively for capital expenditure for development of National Waterways (NWs) under the National Waterway Act, 2016 during 2017-18.

It said the IWAI had engaged arrangers, credit rating agencies, registrars and trustees prior to raising the bonds.

The e-bidding for raising the bonds was organised on October 11 on the BSE Portal with the issue size of Rs 300 crore and Green Shoe option of Rs 360 crore, a Ministry statement said.

The issue was oversubscribed and the entire amount of Rs 660 crore has been raised in a single tranche at a coupon rate of 7.47 per cent.

"The principal and interest in respect of the EBRs worth Rs 660 crore shall be financed by the Government of India by making suitable budgetary provisions in the Demand for Grants of the Ministry of Shipping to meet the bond servicing requirements as and when the need arises," said the Ministry, adding that the interest payment will be on semi-annual basis and the principal on maturity.