NHAI InvIT raises Rs 1430 crore in novel road-funding initiative

The National Highways Infra Trust (NHAI InvIT), the infrastructure investment trust backed by the National Highway Authority of India (NHAI) has raised Rs 1,430 crore from domestic and international investors through placement of its units, for part funding its acquisition of three additional road projects from NHAI.

According to the Centre, the units have been subscribed by several institutional investors including Canada Pension Plan Investment Board, Ontario Teachers’ Pension Plan Board, State Bank of India, SBI Pension Fund, SBI Mutual Fund, IOCL Employee Provident Fund, L&T Staff Provident Fund, Rajasthan Rajya Vilyui Armchair Pension Fund, TATA AIG and Star Union Daiichi Life Insurance.

The NHAI subscribed to the units through preferential allotment to maintain its unit holding of at least 15 percent. The units were subscribed through a book build process at Rs 109 per unit, at a premium over floor price of Rs 107.12 per unit.

“In a historic first, NHAI InvIT has, through a transparent and market driven process, raised the funds in a follow-on issuance with entire premium accruing to NHAI,” said Alka Upadhyaya, NHAI Chairperson.

In addition to the above, NHAI InvIT has also filed a prospectus with SEBI for issuance of Non-Convertible Debentures (NCDs) to raise Rs 1,500 crore. The NCDs would carry a coupon of 7.90 percent payable semi-annually and would be available for subscription by both retail and institutional investors.

The statement added that the development signifies the support to National Monetization Pipeline, in which NHAI has the largest share and is key for the development of road infrastructure.

 “In a historic first, NHAI InvIT has, through a transparent and market driven process, raised the funds in a follow-on issuance with entire premium accruing to NHAI,” said Alka Upadhyaya, NHAI Chairperson.

Launched in November 2021, the NHAI InvIT had raised Rs 8,011 crore for NHAI in its maiden round, with an initial portfolio of five operating toll roads totalling 390 kilometres. With the acquisition of three additional road projects, NHAI InvIT will own, operate and maintain a portfolio of eight operating toll roads with an aggregate length of 636 km spread across Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, Telangana and Uttar Pradesh. These projects have concession periods ranging between 20 and 30 years.