JNPT to raise up to Rs 2,000 crore through tax-free bonds

Jawaharlal Nehru Port Trust (JNPT), plans to raise up to Rs 2,000 crore through tax-free bonds. The issue size would be Rs 500 crore, with an over-subscription option of up to Rs 1,500 crore.

The bonds, with a term of 10 years, would have a fixed interest of 6.28 per cent a year. Retail individual investors would get additional interest of 0.50 per cent a year (7.32 per cent). The issue opens on Monday and closes on Friday.

The net proceeds will be primarily used for dredging works to deepen and widen the Mumbai harbour channel and JN Port’s navigational channel. These would also be used for capital expenditure for other projects, in relation to the port operations.