National Highways Authority of India (NHAI) will launch its first ever tax-free bonds issue of Rs 10,000 crore on December 28.The issue will be live for 3 days and then close on Dec 30th itself. The money raised from it will be used to partly finance various National Highways projects under different government schemes.
The interest rate offered on these bonds would be in range of 8-8.5% and come with two maturity periods of 10 and 15 years. As the interest earned on these bonds are tax free , the effective rate of return be more than 12% for a taxpayer in high tax bracket