.2.jpg "ROADIS’ Varanasi-Aurangabad Tollway Raises 6.3 Mn via Bond Issuance")
Varanasi Aurangabad NH-2 Tollway Private Limited (VAH), a ROADIS project, has raised USD 316.3 million through a dollar-denominated bond issuance. The bonds have a coupon rate of 5.90% and will mature in nine years.
The issuance received strong investor response, with an order book peaking at over USD 3.3 billion. VAH is one of three highway projects under the build-operate-transfer (BoT) model managed by ROADIS in India. The bond issuance marks VAH’s first US$ denominated debt in international capital markets.
The bond issuance was well-received by institutional investors, underscoring the growing appetite for infrastructure-backed financial instruments. The funds will primarily be utilized to refinance existing debt, fund maintenance and operational improvements, and ensure the long-term sustainability of the tollway. This financial maneuver is expected to strengthen ROADIS’ balance sheet, providing greater flexibility to invest in future infrastructure projects across India.
Strengthening India’s Road Network
The Varanasi-Aurangabad Tollway is a vital corridor within India’s extensive highway network, facilitating smooth transportation for commercial and passenger vehicles between Uttar Pradesh and Bihar. The highway plays a critical role in reducing travel time, enhancing trade efficiency, and supporting economic growth in the region.
With increased government focus on infrastructure expansion under the Bharatmala Pariyojana program, private investments like ROADIS’ bond issuance align with the broader goal of improving road quality, boosting logistics, and accelerating regional development.
Investor Confidence in Infrastructure Assets
The success of the bond issuance demonstrates the rising investor confidence in toll-based infrastructure projects, particularly those with a strong track record of traffic flow and revenue generation. ROADIS’ operational expertise and long-term concession agreements have been key factors in securing investor trust.
Moreover, the positive market response to the issuance highlights the effectiveness of public-private partnerships (PPPs) in mobilizing capital for infrastructure projects. By leveraging innovative financial instruments, ROADIS continues to attract global investments while contributing to India’s infrastructure growth story.
Future Growth Prospects
Looking ahead, ROADIS remains committed to enhancing its footprint in India’s road infrastructure landscape. The company has been actively pursuing opportunities for expansion, including new expressways and highway modernization projects.
The success of this bond issuance sets a strong precedent for future capital-raising efforts, positioning ROADIS as a key player in India’s transportation sector. With the Indian government’s continued push for improved road networks and sustainable infrastructure, ROADIS is well-placed to capitalize on emerging opportunities.
As India advances towards becoming a global economic powerhouse, investments in high-quality road infrastructure will remain a crucial driver of progress. The Varanasi-Aurangabad Tollway, supported by this fresh influx of capital, is set to continue playing a pivotal role in enhancing connectivity and fostering economic development.
ROADIS’ latest financial move reaffirms its long-term commitment to India’s infrastructure sector, ensuring efficient, safe, and sustainable road transportation for millions of commuters and businesses alike.
Group Media Publication
Construction, Infrastructure and Mining
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