Shah deepens KKR presence in the Indian market
Global investor KKR has launched Highways Infrastructure Trust (HIT), a roads infrastructure investment trust (InvIT), in India as it scales up investment in the country.
“Highways and roads play a critical role in driving India’s economic prosperity and connecting its citizens, and we look forward to enabling further infrastructure creation and expansion as transportation demands continue to grow.
“With our dedicated platforms across transmissions, roads and renewables in place, KKR is well-positioned to collaborate with sellers in the private markets and the government through the National Monetisation Pipeline on attractive investment opportunities,” he said.
HIT is in addition to Virescent Renewable Energy Trust, India’s first renewable energy InvIT, and India Grid Trust, a leading transmissions InvIT. Together, these platforms operate and manage 33 assets valued at over US$3.8 billion across 22 states or union territories across India.
HIT’s initial portfolio comprises of six roads assets with a total length of more than 450 km across six states in India. The assets, which include a diversified mix of toll and annuity roads, are located in Gujarat, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu and Telangana.
In addition, HIT is considering a pipeline of acquisition targets, including through its sponsor. The platform possesses significant growth potential and seeks to invest in high-quality assets, including through bolt-on acquisitions.
HIT has been assigned a ‘Provisional AAA/Stable’ rating for its loan facilities from CRISIL, S&P’s India affiliate. The rating reflects the assets’ favorable location and geographical diversity, as well as strong track record of revenue.
HIT’s launch takes place on the back of growing demand to expand India’s road network, the second-largest globally, as passenger traffic and commercial vehicle traffic continue to increase.
Globally, KKR’s infrastructure portfolio spans a broad range of sectors including transportation, renewable energy, power and utilities, water and wastewater, and telecommunications, among others, and manages more than US$40 billion in assets. fiinews.com
