New Delhi, Feb 26 – Varanasi Aurangabad NH-2 Tollway Private Limited (VAH), a subsidiary of global infrastructure firm Roadis, has successfully raised $316.3 million (approximately ₹2,750 crore) through a dollar-denominated bond issuance. The funds will be utilized for refinancing and capital expenditure related to the six-lane expansion of the 192 km Varanasi-Aurangabad highway.
The bonds, carrying a 5.90% coupon rate, have a maturity period of approximately nine years. The offering witnessed an overwhelming response from global investors, with the order book soaring past $3.3 billion, marking an oversubscription of nearly 10.4 times. A total of 144 investors from key international markets participated in the issue, underscoring strong investor confidence in VAH’s financial stability and long-term growth prospects.
The Varanasi-Aurangabad highway is a crucial connectivity corridor between Uttar Pradesh and Bihar. It is among the three highway projects managed by Roadis under the build-operate-transfer (BoT) model.
"India remains a core market for us, and this successful bond issuance reinforces our long-term commitment to the country. The financing of VAH highlights our ability to implement innovative funding solutions,” said Roadis CEO Jose Antonio Labarra.
Deutsche Bank served as the sole global coordinator for the transaction, while HSBC and Societe Generale acted as joint book runners.
VAH is responsible for the expansion, operation, and maintenance of the Varanasi-Aurangabad section of NH-2 (from km 786 to km 978.4) under the design, build, finance, operate, and transfer (DBFOT) model as part of the National Highways Development Project (NHDP) Phase-V. The concession is fully controlled by Roadis.
This bond issuance highlights India’s growing infrastructure financing opportunities and the strong appetite of global investors for the country’s highway expansion projects.
The bonds, carrying a 5.90% coupon rate, have a maturity period of approximately nine years. The offering witnessed an overwhelming response from global investors, with the order book soaring past $3.3 billion, marking an oversubscription of nearly 10.4 times. A total of 144 investors from key international markets participated in the issue, underscoring strong investor confidence in VAH’s financial stability and long-term growth prospects.
The Varanasi-Aurangabad highway is a crucial connectivity corridor between Uttar Pradesh and Bihar. It is among the three highway projects managed by Roadis under the build-operate-transfer (BoT) model.
"India remains a core market for us, and this successful bond issuance reinforces our long-term commitment to the country. The financing of VAH highlights our ability to implement innovative funding solutions,” said Roadis CEO Jose Antonio Labarra.
Deutsche Bank served as the sole global coordinator for the transaction, while HSBC and Societe Generale acted as joint book runners.
VAH is responsible for the expansion, operation, and maintenance of the Varanasi-Aurangabad section of NH-2 (from km 786 to km 978.4) under the design, build, finance, operate, and transfer (DBFOT) model as part of the National Highways Development Project (NHDP) Phase-V. The concession is fully controlled by Roadis.
This bond issuance highlights India’s growing infrastructure financing opportunities and the strong appetite of global investors for the country’s highway expansion projects.
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