NHAI would retain a minimum of 15% equity and the rest would be offered to domestic institutional investors
Canadian Pension Plan Investment Board and Ontario Teachers’ Pension Plan will be the anchor investors for the Infrastructure Investment Trust (InvIT) of the National Highways Authority of India (NHAI) with each picking up 25% stake.
Besides, NHAI would retain a minimum of 15% equity and the rest would be offered to domestic institutional investors.
The InvIT will initially have a portfolio of five operating toll roads with an aggregate length of 390 kilometers, with more roads planned to be added later. These roads are located across the states of Gujarat, Karnataka, Rajasthan and Telangana. NHAI has granted new concessions of 30-years for these roads.
The total enterprise value of the portfolio of five roads was pegged at ₹8,011.52 crore. NHAI InvIT is being funded through debt of Rs. 2,000 crore from State Bank of India, Axis Bank and Bank of Maharashtra. The balance is being funded by issuing units of Rs. 6,011.52 crore to international and domestic institutional investors, and NHAI as sponsor.
“We are pleased that NHAI InvIT has been able to garner funds from marquee international and domestic institutional investors to support the Government of India’s National Monetisation Pipeline. We welcome the two anchor investors – Canadian Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board, and other reputed domestic investors, into NHAI InvIT. The success of this InvIT shall go a long way in achieving Hon’ble Prime Minister’s vision of developing world class infrastructure in the country,” said GiridharArmane, Secretary Ministry of Road Transport and Highways and NHAI Chairman.