The National Highways Authority of India (NHAI) is reportedly seeking to raise Rs 9,000 crore for its infrastructure investment trust (InvIT), National Highways Infra Trust (NHIT). The funds would be used to acquire a portfolio of six road projects spanning nearly 635 kilometers.
The fundraising is expected to be a combination of debt and equity, with the debt component potentially coming from bank loans and the sale of non-convertible debentures (NCDs). The equity issue, comprising fresh units of the InvIT, may be offered to institutional investors only, with potential participation from both domestic and foreign institutions, including large pension funds.
This would be the third round of fundraising for NHIT, which has already raised around Rs 10,000-11,000 crore in the previous two rounds. The InvIT model allows NHAI to monetize its road assets by transferring them to a trust, which then raises funds from investors. This helps NHAI to free up capital for new projects.
The government has been focusing on asset monetization to fund infrastructure development in the country, and InvITs are an important tool in this strategy. NHIT is one of the largest InvITs in India, and its success is expected to encourage more such initiatives in the infrastructure sector.
