CPPIB and Ontario Teachers’ Pension Plan bag NHAI’s maiden InvIT

The Canadian Pension Plan Investment Board (CPPIB) and the Ontario Tea­chers’ Pension Plan will be the anchor investors of the much-awaited infrastructure investment trust (InvIT) of the National Highways Authority of India (NHAI). They will pick up 25 per cent equity each in the Rs 60 billion issue. Apart from the anchor investors, NHAI will retain a minimum of 15 per cent equity, while the rest will be offered to domestic institutional investors. The InvIT has an initial portfolio of five operating toll roads in Gujarat, Karnataka, Rajasthan and Telangana with an aggregate length of 390 km. The total enterprise value of the five roads was pegged at Rs 80.12 billion, which includes debt of Rs 20 billion from the State Bank of India, Axis Bank and the Bank of Maharashtra. The rest is being funded through the issue.