NHAI will maintain minimum 15% equity and the rest will be given to domestic institutional investors
The Canadian Pension Plan Investment Board and the Ontario Teachers Pension Plan will be anchor investors for the National Highways Authority of India’s (NHAI) Infrastructure Investment Trust (InvIT), with a 25% stake each.
In addition to this, NHAI Will maintain a minimum of 15% equity and the rest will be given to domestic institutional investors.
The InvIT will initially have a portfolio of 5 operating toll roads, with a total length of 390 km, and plans to add more roads later. These roads are located in the states of Gujarat, Karnataka, Rajasthan and Telangana. NHAI has given new concessions for 30 years for these roads.
The total enterprise value of the five roads portfolio was estimated to be Rs 8,011.52 crore. NHAI InvIT is being funded through a loan of Rs. 2,000 crore from State Bank of India, Axis Bank and Bank of Maharashtra. The balance amount is being funded by issuing units of Rs. 6,011.52 crore to international and domestic institutional investors and NHAI as sponsor.
“We are delighted that NHAI InvIT has been able to raise funds from international and domestic institutional investors to support the National Monetization Pipeline of the Government of India. We welcome two leading investors – the Canadian Pension Plan Investment Board and the Ontario Teachers Pension Plan Board – and other prestigious domestic investors to NHAI InvIT. The success of this invitation will go a long way in achieving the Hon’ble Prime Minister’s vision of developing world class infrastructure in the country,” said Giridhar Armane, Secretary, Ministry of Road Transport and Highways and Chairman, NHAI.
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