TVS Infrastructure Trust has recently completed Tranche I of its Rs 11 billion Non-Convertible Debenture (NCD) programme, marking a significant milestone in India’s infrastructure financing landscape. The Infrastructure Investment Trust, sponsored by TVS Industrial & Logistics Parks, raised Rs 8.3 billion through a 20-year bond issuance, one of the longest-tenor transactions in the industrial and warehousing InvIT segment.

The issuance was anchored by National Bank for Financing Infrastructure and Development (NaBFID) and is among the lowest-cost, institutionally backed debt issuances in the sector. Rated AAA by ICRA, the bonds carry a competitive coupon of 7.42 per cent, reflecting strong asset-backed cash flows, conservative leverage and high governance standards.

The transaction positions TVS Infrastructure Trust as one of the earliest InvITs to align long-duration institutional capital with industrial infrastructure assets. The Trust plans to raise the remaining Rs 2.7 billion under Tranche II, subject to market conditions and strategic requirements.

The proceeds are expected to support balance sheet optimisation and portfolio expansion, with the Trust targeting growth to 20 million sq ft across key industrial and logistics markets, including emerging Tier II and Tier III cities.