National Highways Infra Trust ("NHIT"), the Infrastructure Investment Trust ("InvIT") of NHAI, successfully concluded its fund-raising through 'InvIT Round-3' for national highway stretches of aggregate length of 889 kms (eight hundred and eighty-nine kilometers) at an enterprise value of over INR 16,000 crore (Indian Rupees sixteen thousand crore). This happens to be the largest tranche of monetisation by NHAI and one of the largest transactions in the history of Indian road sector
The units of NHIT saw subscription from both existing and new investors, which included foreign pension funds viz. Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan Board; domestic pension/provident funds (IOCL Employee's Provident Fund, L&T Staff Provident Fund, Rajasthan Rajya Vidyut Karamchari Pension Fund, SBI Pension etc.), insurance companies (Tata AIG, SBI Life, HDFC Life), other mutual funds and banks.
Upon the completion of the 'InvIT Round – 3', the total realised value of all 3 (three) rounds of NHIT stands at INR 26,125 crore (Indian Rupees twenty-six thousand one hundred and twenty-five crore) and the trust holds a diversified portfolio of 15 (fifteen) operating toll roads with an aggregate length of about 1,525 km (one thousand five hundred twenty-five kilometers) spread across the 9 (nine) States of Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttar Pradesh and West Bengal. The concession periods of these road projects range between 20 (twenty) – 30 (thirty) years.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
