National Highways Infrastructure Trust to Issue Zero-Coupon Bonds in Two Tranches

The National Highways Infrastructure Trust (NHIT) is set to issue zero-coupon bonds in two tranches, according to banking sources. This move comes after the trust cancelled a ₹1,400 crore bond issue in December 2024 due to weak demand and high interest rates.The new issuance strategy aims to attract investors in the current market conditions. Zero-coupon bonds typically offer a lower initial investment cost and can be attractive in a high interest rate environment.This development aligns with NHIT's ongoing efforts to raise funds for infrastructure development. The trust, backed by the National Highways Authority of India, plays a crucial role in monetizing national highway projects through various models including infrastructure investment trusts.