Latham Advises on Varanasi Aurangabad Highway’s US$316.3 Million Bond Issuance

Latham & Watkins has advised the issuer on the US$316.3 million bond offering of Varanasi Aurangabad NH-2 Tollway Private Limited (VAH), a ROADIS project responsible for the expansion to six lanes, operations, and maintenance of the 192 kms highway from Varanasi to Aurangabad. The bonds carry a coupon rate of 5.9% and will mature in close to nine years.

The transaction sets a new milestone in the Indian road sector, with VAH becoming the first Indian road concession company to raise US$ denominated project debt in the international capital markets and to obtain Investment Grade by Moody’s and Fitch.

The Latham team was led by Singapore corporate partner Rajiv Gupta and Madrid partner Fernando Colomina, with Singapore counsel Jeremy Wang, Madrid counsel Luis Sanchez, and Singapore associate Kay Howe Lee. Advice was provided on US tax matters by Chicago partner Rene de Vera and New York partner Bora Bozkurt, with Boston associate James Aldred; and on 1940 Act matters by Chicago partner Laura Ferrell, with associate Daniel Filstrup.

ABOUT VARANASI AURANGABAD HIGHWAY (VAH)

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. VAH is fully controlled by the ROADIS Group.

ABOUT LATHAM’S INDIA PRACTICE

With over 20 years of experience advising on Indian debt and equity capital markets transactions, Latham has one of the largest and most active India practices among international law firms. The multi award-winning practice comprises more than 50 lawyers globally, and the team has advised on India-related matters with a combined value in excess of US$100 billion since 2018.