NHAI’s InvIT to raise ₹9,000 cr

livemint.com:

NEW DELHI : The National Highways Infra Trust (NHIT), the investment trust sponsored by the National Highways Authority of India, plans to raise as much as ₹9,000 crore after Diwali through a mix of debt and equity, two people familiar with the development said. The infrastructure investment trust’s (InvIT’s) third round of fundraising, involving the monetization of six 250km highway stretches, will be conducted in phases, targeting domestic and global investors. Additionally, a proposed non-convertible debentures (NCD) issue, the size of which would be similar to last year’s ₹1,500 crore, would also be offered to retail investors with assured returns of close to 8%, the people said on the condition of anonymity.

In March, NHIT plans another fundraising to raise ₹5,000-6,000 crore in the fourth phase of asset monetization. These funds will be allocated to six highway stretches spanning 635km, which have been identified by NHAI for the InvIT. These highways are generating around ₹400 crore in annual revenue.

“The InvIT is not inviting retail investors in the equity issue in the third round, and this would be considered later after the road projects mature, providing steady revenue streams with increasing traffic, giving an attractive investment opportunity to investors,“ one of the people said. NHIT managing director and chief executive Suresh Goyal confirmed that the third round of fundraising is expected to start after Diwali. “Subject to approvals and acceptance of the offer by NHAI, the fundraising is expected to be a mix of debt and equity.