NHAI InvIT plans to raise Rs.50 billion

The National Highways Authority of India (NHAI) will come out with its Rs.50 billion Infrastructure Investment Trust (InvIT) by early next year. It will be a landmark accomplishment once it materialises, as it will be the first InvIT to be sponsored by any government entity in the country. Initially, it will consist of highway assets under a TOT 2 bundle.

Suresh Goyal, former India Head & Senior Managing Director, Macquarie Infrastructure and Real Assets-MIRA (India), has been hired as the Managing Director & CEO of the upcoming InvIT. Other members of the board include B Sriram, (former Managing Director & CEO of IDBI Bank) as chairman, and Shailendra N Roy (former director, L&T Group) and MP Sharma as 

independent directors.

InvITs are popular among investors in long-term revenue-generating assets like toll roads and power-transmission projects. For investors, they offer a cornucopia of assets to assess; for sponsors, they offer a readymade launchpad to sell assets. Even though the outcome of the InvIT is dependent on returns and debt serviceability of the pool, sponsors with debt-laden balance sheets will still find this structure attractive. Further, global investors have been keen on such entities floated by domestic entities as the operating infrastructure assets provide stable and long-term yields under the InvIT structure.