Varanasi Aurangabad Highway Raises $316.3 Million From Dollar-Denominated Bonds

New Delhi, February 25, 2025: Varanasi Aurangabad NH-2 Tollway Private Limited (VAH), a ROADIS project responsible for the expansion to six lanes, operations and maintenance of the 192-km highway from Varanasi to Aurangabad, has successfully raised $316.3 million through a dollar-denominated bond issuance, a first for any Indian road concession company. The bonds have a coupon rate of 5.90 per cent and will mature in close to nine years. The funds raised will be used for refinancing and capital expenditure.

The bond offering received an overwhelming response from global investors, an oversubscription of approximately 10.4times. The issuance saw participation from 144 investors across key international markets, underscoring the strong investor confidence in VAH’s financial position and long-term growth prospects.

The stretch, which enhance connectivity between Uttar Pradesh and Bihar, is one of the three highway projects under the build-operate-transfer (BoT) model managed by ROADIS in the country. VAH has set a new milestone in the Indian road sector, by becoming the first Indian road concession company to raise US$ denominated debt in the international capital markets to obtain investment grade ratings from Moody’s and Fitch.

Mr José Antonio Labarra, CEO of ROADIS, expressed his satisfaction with the successful bond issuance. “India is a principal key market for us, and this successful bond issuance underscores our unwavering long-term commitment to the country. The financing of VAH showcases our capacity to find innovative financing solutions.”

Deutsche Bank acted as the Sole Global Coordinator on the transaction, and as joint book runners along with HSBC and Societe Generale.

VAH is a concession responsible for the expansion to six lanes, operations and maintenance of the Varanasi–Aurangabad section of NH-2 from km 786 to km 978.4 (length 192.4 km) in Uttar Pradesh and Bihar on design, build, finance, operate and transfer (DBFOT) toll basis under NHDP Phase-V. VANTPL is fully controlled by ROADIS.