JP Morgan, HDFC MF grab IL&FS arm Andhra Pradesh Expressway bond sale

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Agencies: New Delhi, Nov 19 2012, 22:16 IST

investment as this is an already commissioned project. "Accordingly we will be getting annuity from the national highway authority for the 13-year maturity of the issue," Agarwal said, adding for the time being, they have no plan to exit the investment.

Refusing to detail of the return on his investment, he said for the MFs, the coupon is fixed at 10 percent.

The issue is important as this is the first such bond sale in two years and is the first instance of a private capital market investor and mutual funds investing in bonds from an infrastructure company, Agarwal said, adding earlier, all the infra bonds were primarily subscribed to by LIC.

Agarwal also said JP Morgan India was the sole book-runner and structuring adviser to the issue. The NCD sale, which took place on November 8, consisted of listed, rated and secured bonds, according to JP Morgan.

The bonds carry AAA ratings by both Icra and India Ratings and are structured in the form of seven tranche series having staggered maturity with the final tranche maturing at the end of 13 years, Agarwal said.

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