NHAI InvIT likely to raise up to Rs 40 billion in two tranches

The National Highways Authority of India (NHAI) is planning to raise up to Rs 40 billion for its infrastructure investment trust (InvIT), which is set to accelerate road asset acquisition, likely by forming a new special purpose vehicle (SPV) under the trust structure. While half of the funds may be raised by selling units in the InvIT to current investors such as Canadian pension funds – the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan – the remainder of the money is an­ticipated to come from a public bond sale in the local market. The two Canadian funds possess 25 per cent each in an existing SPV under the InvIT, which holds around half a dozen road assets.