NHAI seeks to raise ₹6,000 crore through InVIT route

This will be the first asset monetization through the InvIT route by a state-owned enterprise, making it a key exercise for the upcoming asset monetization plan of the central government, through which it aims to mobilize more ₹6 trillion.

InvITs are trusts that manage income-generating infrastructure assets, typically offering investors regular yields and a liquid method of investing in infrastructure projects.

“Talks are in the final stages. CPPIB is coming in as the anchor investor. OMERS will also invest in Infrastructure Investment Trust. There are also some domestic institutional investors who want to participate. they are tied around ₹5,000 crore fund and they are looking at additional ₹1,000 crore,” said one of the two people requesting anonymity as he is not authorized to speak to journalists.

“They have already completed work on the final placement document, and this transaction is likely to close by the end of the month or early next month,” he said.

CPPIB and OMERS declined to comment, while emails sent to NHAI did not elicit any response.

NHAI in April filed draft papers for its proposed Infrastructure Investment Trust, outlining plans to raise fresh capital ₹5,100 crore, and secondary sale of units by NHAI.

The Infrastructure Investment Trust portfolio consists of five road properties spread across Gujarat, Rajasthan, Maharashtra, Karnataka, Andhra Pradesh and Telangana, most of which generate toll revenue. ₹460 crore for the financial year 2021.

According to the draft documents filed by NHAI, the proceeds of the fundraising will be used to infuse debt or equity in the underlying road projects, which will be used to pay the initial estimated concession price to NHAI and fund improvements and repair costs. Will go

The Infrastructure Investment Trust has an option to acquire more road projects of about 1,500 km of roads from NHAI in the next three years.

Last year, NHAI appointed Suresh Goel, former India head of Macquarie Infrastructure & Real Assets, one of Asia’s largest infrastructure investors, as chief executive and managing director of investment manager at Infrastructure Investment Trust.

NHAI’s Infrastructure Investment Trust will be the second such asset monetization by a state-owned enterprise. In May, PowerGrid Corp. of India Ltd picked up ₹7,700 crore through the IPO of InvIT of its transmission lines.

Road projects have been the most popular asset to be monetized through the infrastructure investment trust route since the product was launched in 2017.

IRB Infrastructure Developers, L&T Infrastructure Development Projects Ltd and Shram Group have monetized road projects through this route.

Last month, Mint reported that the road platform is in talks with Cube Highways Pension Fund and sovereign wealth funds to raise $1 billion through an InvIT that will include the country’s largest portfolio of privately held road assets. .