National Highway Infra Trust’s Long-Dated Bonds Offer 8.05% Annualised Return


The NHIT is raising close to Rs 3,000 crore in the second round of fundraising. This included sale of units to existing and new institutional investors for Rs 1,430 crore; and Rs 1,500 crore to public through the bond offering.

The money will be used for acquiring three additional assets from the NHAI: the Agra bypass, Borkhedi-Kelapur and Shivpuri-Jhansi roads that are part of the Golden Quadrilateral, east-west and north-south corridors.

The assets together will have close to Rs 300 crore in annual revenue, said Suresh Goyal, managing director and chief executive officer at NHIT, told BQ Prime.

The infrastructure trust will have eight asset on a toll-operate-transfer basis. Its revenue is expected to rise 7-10% annually on the back of in-built tariff hikes and traffic growth in the 20 to 30-year concessions.

The NHAI is transferring assets under the The National Monetisation Pipeline, which plans to 26% India’s road and highway assets.

There is no plans to launch another InvIT in the near future, said Goyal, indicating more assets will be added to the InvIT and the government can taking it public.


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