NHAI's InvIT to raise ₹9,000 cr

The fundraising may have equal debt and equity components, with debt coming from bank loans and the sale of NCDs

- Subhash Narayan

The National Highways Infra Trust (NHIT), the investment trust sponsored by the National Highways Authority of India, plans to raise as much as ₹9,000 crore after Diwali through a mix of debt and equity, two people familiar with the development said.

The infrastructure investment trust’s (InvIT’s) third round of fundraising, involving the monetization of six 250km highway stretches, will be conducted in phases, targeting domestic and global investors. Additionally, a proposed non-convertible debentures (NCD) issue, the size of which would be similar to last year’s ₹1,500 crore, would also be offered to retail investors with assured returns of close to 8%, the people said on the condition of anonymity.

In March, NHIT plans another fundraising to raise ₹5,000-6,000 crore in the fourth phase of asset monetization. These funds will be allocated to six highway stretches spanning 635km, which have been identified by NHAI for the InvIT. These highways are generating around ₹400 crore in annual revenue.