NHAI InvIT mulls raising Rs2,000 crore for acquisition of road assets

29 Sep 2022 , 02:35 PM

The National Highways Authority of India (NHAI) infrastructure investment trust (InvIT) is looking to collect Rs2,000 crore from investors to purchase two to three road assets from its parent, according to two persons familiar with the situation.

CPP Investments and the Ontario Teachers’ Pension Fund are among the investors in the InvIT, which was established last year.

“The NHAI intends to transfer 2-3 new road assets to the InvIT, for which they intend to generate Rs1,500-2,000 crore fresh funds,” cited the sources.

InvITs are trusts that manage income-generating infrastructure assets. They generally provide investors with a consistent dividend and a liquid way to participate in infrastructure projects.

NHAI has established its first roadways InvIT to monetize its enormous portfolio of assets and raise funding for highway construction. It has raised Rs6,000 crore through its InvIT, with CPP and Ontario Teachers’ Pension Fund each receiving 25% as anchor investors.

The infrastructure investment trust’s first portfolio included five road assets spanning throughout Gujarat, Rajasthan, Maharashtra, Karnataka, Andhra Pradesh, and Telangana, with a total length of 390km and tolling income of more than Rs460 crore for FY21. 

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