Armane says NHAI has been able to garner funds from marquee investors
International funds, Canadian Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board, will hold, as anchor investors, 25% each of the units of the National Highway Authority of India (NHAI) InvITs covering roads in Gujarat, Karnataka, Rajasthan and Telangana. These InvITs are to be listed on BSE and NSE in Mumbai.
“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,” Giridhar Armane, Secretary MoRTH and NHAI Chairman, said in a release on 3 Nov 2021.
“We are pleased that NHAI InvIT has been able to garner funds from marquee international and domestic institutional investors to support the Government’s National Monetisation Pipeline.”
NHAI, he said, has demonstrated its strong ability to attract a wide variety of sophisticated investors for the National Monetisation Pipeline.
NHAI has put five 390-km toll roads under InvITs as a mode to monetise infrastructure assets on 30-year concession.
The total enterprise value of the initial portfolio of five roads was pegged at Rs.8,011.52 crore. NHAI InvIT is funding that through debt of Rs.2,000 crore from the 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.
Going forward, more roads will be put under InvITs, said NHAI, which has the largest share under the National Monetisation Pipeline.
In view of the long-term nature of the assets, the units of InvIT were placed with international and domestic institutional investors. The units have been issued under the private placement route under SEBI InvIT Regulations, 2014 at the upper valuation band of Rs.101 per unit.
In addition to the Canadian funds, the units were also placed with a diversified set of domestic institutional investors comprising pension funds, insurance companies, mutual funds, banks and financial institutions. #investment #banking #projects #infrastructure #economy /fiinews.com
