NHIT plans Rs 90 bn fundraising through debt and equity

The National Highways Infra Trust (NHIT), sponsored by the National Highways Authority of India, plans to raise up to Rs 90 billion post-Diwali through a mix of debt and equity in its third round of fundraising. The funds will be generated by monetising six 250 km highway stretches in phases, targeting both domestic and global investors. A proposed non-convertible debentures (NCD) issue, similar to last year's Rs 15 billion, will be offered to retail investors with assured returns of around 8%. NHIT also plans another fundraising round in March, aiming to raise Rs 50-60 billion in the fourth phase of asset monetisation for six highway stretches spanning 635km. The InvIT will not include retail investors in the equity issue during the third round but might consider it later when road projects mature, providing steady revenue streams. NHIT aims to maintain a low debt component, possibly through bank loans and NCD sales. NHAI launched its InvIT in 2021, acquiring toll road assets and raising significant funds. NHAI plans to monetise a list of 46 projects span over 2,612km in the fiscal year 2024, aiming to generate up to Rs 450 billion through various funding models, including InvITs and toll-operate-transfer mechanisms. Roads are a vital component of the national monetisation pipeline, contributing significantly to the government's overall target of Rs 6 trillion in asset monetisation by 2024-25.