NHAI’s National Highways Infra Trust Concludes Record Monetization

New Delhi: The National Highways Infra Trust (NHIT), an Infrastructure Investment Trust established by the National Highways Authority of India (NHAI), has achieved a significant milestone by successfully concluding the fund-raising through the ‘InvIT Round-3’ for National Highway stretches spanning a total length of 889 kilometers. This monumental accomplishment, valued at over Rs. 16,000 crore, marks the largest monetization endeavor by NHAI and stands as one of the most significant transactions in the history of the Indian road sector.

The issuance of the Letter of Acceptance (LOA) for raising the highest-ever concession value through ‘InvIT Round-3′ took place last month in February 2024, laying the groundwork for this transformative initiative.

In the latest round of monetization, NHIT raised unit capital of approximately Rs. 7,272 crore from leading domestic and international investors, along with debt of around Rs. 9,000 crore from Indian lenders. The base concession fee amounted to approximately Rs. 15,625 crore, with additional concessional fees of Rs. 75 crore. Investors subscribed to the units through a book build process at a cut-off price of Rs. 124.14 per unit, representing a premium over the current Net Asset Value (NAV) of Rs. 122.86 per unit.

The strong demand for units was evidenced by participation from existing and new investors, including foreign pension funds such as the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board, domestic pension/provident funds, insurance companies, mutual funds, banks, and others. NHAI also subscribed to its share of approximately 15% of the units at the same price.

With the successful conclusion of the third round of monetization, the total realized value of all three rounds of InvIT stands at Rs. 26,125 crore. NHIT now boasts a diversified portfolio of fifteen operating toll roads spanning approximately 1,525 km across nine states in India.

National Highways Infra Trust was established in 2021 to support the Government of India’s National Monetization Pipeline, and its success underscores the efficacy of the Public-Private Partnership (PPP) model in driving infrastructure development.

Commenting on the achievement, Shri Anurag Jain, Secretary, Ministry of Road Transport & Highways, hailed NHIT as a pivotal player in supporting the National Monetization Pipeline and channelizing financial capital into the development of India’s road sector. NHAI Chairman, Shri Santosh Kumar Yadav, expressed his satisfaction with NHIT’s pivotal role in the monetization and development of the Indian roads sector.

Shri Suresh Goyal, MD of the Investment Manager of NHIT, extended gratitude to existing investors for their continued support and welcomed new partners onboard, affirming NHIT’s commitment to supporting NHAI in advancing India’s road sector development.

Since November 2021, NHIT has raised approximately Rs. 12,000 crore through the first two rounds of monetization, solidifying its position as a key contributor to India’s infrastructure growth journey.