National Highways Infrastructure Trust issues Rs 1,500-crore NCDs

National Highways Infrastructure Trust (NHIT) will raise Rs 1500 crore through non-convertible debentures, as it looks to add three highways stretches worth Rs 3800 crore to its portfolio.

NHIT is the Infrastructure Investment Trust (InvIT) of the National Highways Authority of India (NHAI). Last week, the InvIT raised external capital of 1217 crore from institutional investors.

The trust will issue 15 million debentures of three separate face values, according to a filing made by the trust to the Securities and Exchange Board of India (SEBI).

While Union minister for road transport and highways and earlier said that he wantes to tap public funds for highway development, many thought that this would mean the public listing of the currently private-listed InvIT. Sources said that the plan is being worked out with SEBI. Meanwhile, retail investors can invest in the NCDs. Previously, NHIT’s debt component comprised only bank loans.

“We are now going to capital markets for our Build-Operate-Transfer (BoT) and Hybrid Annuity Model projects and we’ll assure you 8 per cent return. NHAI’s AAA-rated. No problem, no risk, and interest will be paid every month. There is no problem with funding as there are pension funds and others willing to invest. But I’ve decided that now I’ll make roads with the money of retired senior citizens, and from small people like constables, journalists, and service people. They can invest in NHAI,” the minister had said at Business Standard‘s India@75 conclave.

NHIT currently owns, operates and maintains a portfolio of 5 initial toll roads spanning 389 kilometres (kms) in the states of Gujarat, Rajasthan, Telangana, and Karnataka and intends to toll, operate and maintain 3 more toll roads spanning 246 kms in the states of Telangana, Maharashtra, Uttar Pradesh and Madhya Pradesh under the Toll Operate and Transfer model by NHAI.

While the first round of issuance saw a capital infusion of Rs 6011 crore from Canada-based institutional investors, the investors of the second round concluded last week have not been disclosed yet.