YEIDA Set To Float Infra Bonds for Its Upcoming Projects

The Yamuna Expressway Authority has initiated the process of appointing a transaction advisor-cum-merchant banker to raise funds through infra bonds or other financial instruments in view of the upcoming big-ticket projects, including Noida International Airport and Medical Device Park.

To start with, YEIDA proposes to raise a fund of Rs 500 crore. Apart from Noida International Airport and Medical Device Park, other big-ticket projects like multi-modal connectivity, metro rail, pod taxi, medical device park, Toy Park, heritage city and electronic city projects will be funded.

A request for proposal (RFP) has been issued by the Authority recently, even as the second pre-bid meeting of bankers and financial institutions was called. The last date of submission of the bid is June 20, while it will be opened on June 21 to select the merchant banker.

During the pre-bid meeting, as many as nine companies, including ICICI Securities, SBI Capital Markets, Axis Bank, Trust Group and AK Capital, participated and raised their queries. “The Authority is in the process of preparing replies to queries raised at the meeting. The answer will be uploaded online in a couple of days,” AK Singh, DGM (finance), YEIDA, said.

Once appointed, the technical advisor will conduct a study to assess the Authority’s financial requirements and ways of mobilising funds, Singh said. “The advisor will prepare the term sheet and also help in getting credit rating for launching the infra bonds.” During the board meeting in April, the Authority approved the initiative to complete its big projects through infra bonds.

Municipal bonds are debt instruments under which the investor is repaid the fixed amount of principal with interest over a period decided by the agency issuing it. The money raised is then used to fund city development or maintenance projects