NHAI raises record ₹16,000 cr war chest via highway monetisation
Updated: Mar 19th, 2024
National Highways Authority of India (NHAI) |
National Highways Authority of India (NHAI), has raised a record ₹16,000 cr through its Infrastructure Investment Trust for the monetisation of various highway stretches of the aggregate length of 889 kms.
“National Highways Infra Trust (NHIT) has, as part of InvIT Round-3, raised unit capital of around ₹7,272 cr from marquee domestic and international investors and debt of around ₹9,000 cr from Indian lenders, to fund the acquisition of National Highway stretches, at a base concession fee of around ₹15,625 cr, and additional concessional fees of ₹75 cr,” NHAI said today.
The units were subscribed by investors through a book build process at a cut-off price of ₹124.14 per unit, at a premium over the current NAV of ₹122.86 per unit.
The units witnessed strong demand from both existing and new investors, including foreign pension funds viz Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board, which are existing unit holders and subscribed to the maximum limit of 25% each; domestic pension/provident funds (IOCL Employee’s PF, L&T Staff PF, Rajasthan Rajya Vidyut Karamchari Pension Fund, SBI Pension etc.), insurance companies (Tata AIG, SBI Life, HDFC Life), mutual funds (SBI, Nippon India), banks and few others.
NHAI also subscribed to its share of 15% of the units at the same price, according to the NHAI statement.
With the completion of the third round of monetisation, the total realised value of all three rounds of InvIT stands at ₹26,125 cr and holds a diversified portfolio of fifteen operating toll roads with an aggregate length of about 1,525 km spread across the 9 states including Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttar Pradesh and West Bengal, with concession periods ranging between 20 to 30 years.
Commenting on the success of the latest round of NHAI’s monetisation, secretary, ministry of road transport & highways, Anurag Jain said: “NHIT is a successful example of Public Private Partnership (PPP), in which it has played a very important role in supporting National Monetisation Pipeline. While doing that NHIT has established itself as a leading player in the InvIT space, playing a critical role in channelising financial capital into the further development of Indian roads sector.”
(Source: IANS)
- Edited for style
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