NHAI to generate ₹4,000-cr funds via InvIT

The National Highways Authority of India has planned to generate ₹4,000 crore for its infrastructure investment trust (InvIT), which is set to accelerate road asset acquisition by forming a new special purpose vehicle under the trust structure. While half of the funds would be raised by selling units in the InvIT to existing investors including Canadian pension funds CPPIB and OTPP, the rest of the money is likely to come from a public bond sale in the local market where retail investors can buy.

The plan has been chalked out for the two-legged fundraising. National Highways Infra Investment Managers is managing the InvIT, National Highways Infra Trust. The two Canadian funds own 25% each in an existing special purpose vehicle (SPV) under the InvIT, which holds about half a dozen road assets. Obtaining new road assets will create space for adding more overseas investors. Under existing rules, a foreign investor cannot hold more than 25% in an SPV, and the National Highways Infra Investment Managers has issued a request for proposal for the appointment of lead managers for part of the fundraising.