LIC extends ₹8,000 cr credit line to highways

In order to boost highway building in the country, the Life Insurance Corporation (LIC) is all set to extend credit lines of up to ₹8,000 crore this fiscal to modernize the outdated transportation infrastructure across the country. In this connection, LIC has subscribed to ₹4,200 crore worth of bonds (30-year maturities) sold by the National Highway Authority of India (NHAI). The insurance behemoth may buy a similar amount of NHAI debt later in the financial year. This is in view of the agreement inked a few years ago LIC may subscribe bonds of up to ₹8,000 crore. But, if NHAI gets cheaper rates on the exchange bidding platform, the scene may change. LIC is the largest domestic institutional investor and together with EPFO are two large institutional investors that are known for buying long-term bonds beyond 10 years and sources claimed that NHAI may look for a separate debt deal with EPFO.