Jawaharlal Nehru Port Trust (JNPT) announced on Friday that it would raise up to Rs. 2000 crore through a public issue of tax free bonds.
"The money raised will be utilised to complete the Rs. 1,500 crore dredging project and other development activities within the port," said JNPT chairman L Radhakrishnan while making the announcement in Mumbai on Friday.
"Dredging will take the draft of the channel to 14 meters and we expect to complete it by September 2014," Radhakrishnan said.
JNPT which operates the Jawaharlal Nehru Port near Mumbai, is the largest container port in India.
The public issue opens on March 11 and closes on March 15, and the minimum application should be for a lot of 5 bonds, with each having a face-value amounting to Rs. 1,000, and 1 bond thereafter.
The issue size is Rs. 500 crore and it comes along with a greenshoe option of retaining the over subscription of another Rs. 1,500 crore.
Radhakrishnan said that the instrument has been rated 'AAA' by Crisil and that this is the best rate it could offer as per the norms prescribed by the finance ministry.