NHIT to raise Rs2,350 crore through debentures, bank loans for acquisition of 3 projects from NHAI

29 Aug 2022 , 01:27 PM

The National Highways Infra Trust (NHIT) intends to buy three road assets from the state-owned National Highway Authority of India for a maximum of Rs 2,350 crore using bank loans and bonds. Agra Bypass, Borkhedi-Wadner-Kelapur part, and Shivpuri-Jhansi section are being sought after by NHIT, a BSE-listed infrastructure investment trust (InvIT), which currently owns five operating properties. It will sign a 20-year concession contract with NHAI on its behalf.

Rs850crore would come from long-term bank loans and Rs1,500 crore from non-convertible debentures of the total money to be raised, which is Rs2,350 crore. Both facilities have received a Provisional "AAA" rating from CARE Ratings, with a stable outlook. NHIT has an Rs2,000 crore rupee (20-year) sanctioned loan, of which Rs1,480 crore rupees have been raised as of March 2022. Additionally, the InvIT has raised Rs6,011 crore in capital.

The additional assets are likewise mature toll road projects with a demonstrated track record of operations of 5—13 years, in addition to the previous projects' operational track record of 12—18 years. Five road project assets now in the portfolio of the InvIT are the Palanpur-Abu Road, Abu Road-Swaroopganj, Chittorgarh-Kota, Kothakota-Kurnool, and Belgaum-Kagal roads.

The projects in the portfolio are located throughout a variety of geographic regions, including Gujarat, Rajasthan, Telangana, Andhra Pradesh, Karnataka, Uttar Pradesh, Maharashtra, and Madhya Pradesh. InvIT's business risk is greatly reduced as a result, as the likelihood of any regional economic slowdowns or force majeure situations is diminished.

A robust toll collection of Rs 142.48 crore and an ADTC of Rs 1.57 crore were recorded by NHIT for the first quarter that ended in June 2022 (Q1FY23). As the remaining three assets are anticipated to be transferred under InvIT by September 2022 and begin to contribute to toll collection from that point forward in October 2022.