India's Inland Waterways Authority raises Rs.660 crore through Bonds

New Delhi, October 14: An amount of Rs.660 crore has been raised by the Inland Waterways Authority of India (IWAI) through GOI Fully Serviced Bonds in addition to the budgetary support from the Government of India. The decision was taken by the government to raise the amount through GOI Fully Serviced Bonds in 2017-18.

 

Before raising the bonds, the IWAI had arranged credit rating agencies, registrars, and trustees. Credit Rating Information Services of India Limited (CRISIL) and Credit Analysis and Research Limited (CARE) have rated AAA: STABLE to the proposed instrument. AAA refers to the highest safety. On the BSE Portal with the issue size of Rs.300 crore, Green Shoe option of Rs.360 crore, the e-bidding for raising the bonds was organized on 11th October 2017. At a coupon rate of 7.47 percent, the amount of Rs.660 crore was oversubscribed in a single tranche.

Under National Waterway Act, 2016 during 2017-18, the amount collected through the bonds will be utilized by IWAI for capital expenditure for development of National Waterways (NWs).

For development and regulation of Inland waterways for shipping and navigation, Inland Waterways Authority of India (IWAI) was created by Government of India on 27 October 1986. The Authority primarily undertakes projects for development and maintenance of Inland Waterway Terminal infrastructure on National Waterways through a grant received from Ministry of Shipping, Road Transport and Highways.