NHAI INVIT bond has received tremendous response, says Gadkari
Special emphasis is being laid on the expansion of highway network in the North East region, where projects worth more than Rs.2 lakh crore are being implemented.
Minster of Road Transport and Highways Nitin Gadkari gave this update on 27 June 2023 in Delhi, adding that 670 road side facilities are being developed with a view to provide a pleasant experience along the NHs.
He also updated on the recent bond issue under the NHAI’s INVIT (Infrastructure Investment Trust) model, noting that it has garnered “tremendous response”.
Within the first day of its availability in Mumbai, the bond witnessed seven times oversubscription.
Gadkari has also urged investors to consider investing in NHAI INVIT, which offers an attractive interest rate of 8.05 per cent, surpassing traditional bank rates.
NHAI InvIT had issued a total of 59.52 crore units, resulting in a distribution of Rs.47.02 crore to investors which is expected to reinforce investors’ confidence on reaching a historic milestone on its path to becoming a major vehicle to assist NHAI’s monetization ambitions.
Formally launched in October 2021 by the NHAI as a mode to monetize operating roads, InvIT’s foreign investors were led by Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board in the inaugural offering.
The balance units were acquired by a diverse group of domestic institutional investors, including pension funds, insurance companies, mutual funds, banks, and financial organizations.
As part of its ongoing monetization initiative, NHAI has handed NHAI InvIT three new motorways totaling 247 kilometers.
Additionally, the NHAI achieved seven world records, showcasing their commitment to technological advancements and their ambition to position India as the second-largest road network in the world, after the US, said Gadkari.
The Ministry has also utilised 30 lakh tons of garbage in road construction for the Delhi Ring Road project, demonstrating a proactive approach towards waste management and sustainable infrastructure development, he said.
Furthermore, Gadkari highlighted the introduction of bamboo crash barriers, which provide enhanced strength and durability while generating employment opportunities and promoting environmental sustainability.
In line with the Government’s commitment to a sustainable future, Gadkari unveiled a vision for increased Electric Vehicle adoption over the next five years, promoting clean energy and reducing carbon emissions. Fiinews.com
