Over the past year, India’s infrastructure funding landscape has further matured. On the policy front, there have been notable improvements in regulations, bringing clarity and confidence among stakeholders. Infrastructure investment trusts (InvITs), real estate investment trusts (REITs), bonds and equity investments continued to witness increasing activity. In addition, foreign funds and private capital gained momentum. Together, these funding strategies have steadily fuelled infrastructure growth.
Indian Infrastructure takes a look at some of the key developments in the infrastructure finance sector over the past year…
Policy-led reforms
- The centre launched the National Monetisation Pipeline 2.0 with the aim to monetise over 2,000 assets across 12 ministries, with a revenue potential of Rs 16.7 trillion.
- The Securities Exchange Board of India (SEBI) eased InvIT regulations by simplifying private-to-public conversions, reducing minimum allotments to Rs 2.5 million and relaxing cash distribution norms.
- The Reserve Bank of India issued the Non-Fund Based Credit Facilities Directions, 2025, allowing regulated entities to offer credit enhancement facilities.
Expanding loan market
- India’s first maritime-focused non-banking financial company, Sagarmala Finance Corporation Limited, commenced operations.
- The Asian Development Bank approved multi-sector loans including Rs 26.54 billion for the Delhi-Ghaziabad-Meerut Regional Rapid Transit System, $650 million for rooftop solar deployment and clean electricity, $400 million for roads in Maharashtra, and a soft loan of Rs 42.5 billion to Puducherry.
- Adani Airports secured $1 billion for Mumbai International Airport, while ACME Solar Holdings secured a debt tie-up of Rs 47.2 billion.
- Indian Railway Finance Corporation signed a Rs 50 billion rupee-denominated term loan with Maharashtra State Power Generation Company; alongside an external commercial borrowing loan of JPY equivalent $1.1 billion with a consortium of banks.
IPO frenzy
- Initial public offering (IPO) activity remained robust with major entities filing the draft red herring prospectuses with SEBI. These include SAEL Industries (Rs 45.75 billion), Bagmane Prime Office REIT (Rs 40 billion), Sify Infinit Spaces (Rs 37 billion), Horizon Industrial Parks (Rs 26 billion), and Sterlite Electric (Rs 15 billion).
- JSW Energy completed a Rs 40 billion fundraise via qualified institutional placement.
- Rayzon Solar secured approval for its Rs 15 billion IPO, while the Citius TransNet Investment Trust InvIT IPO was oversubscribed 10.01 times.
InvIT and REIT uptake
- InvITs and REITs crossed Rs 9 trillion in assets under management.
- Mindspace Business Park raised Rs 5.5 billion via sustainability-linked bonds from the International Finance Corporation.
- KKR and Canadian pension fund Ontario Teachers’ Pension Plan offloaded stakes worth Rs 24.68 billion in Vertis Infrastructure Trust.
- Indus Infra Trust signed a share purchase agreement (SPA) to acquire four road assets from KNR Constructions for Rs 34.82 billion, while Cube Highways Trust filed for India’s first conversion of a privately listed InvIT into a publicly listed one through the offer-for-sale route, aiming to raise Rs 50 billion.
- The Employee Provident Fund Organisation committed Rs 10 billion to Raajmarg Infra Investment Trust.
Banking on bonds and debentures
- Commercial banks drove record-high issuances, led by Bank of India and the State Bank of India (Rs 100 billion each); Bank of Baroda and Indian Bank (Rs 50 billion each); and Bank of Maharashtra (Rs 8.11 billion).
- Key companies that raised funds through non-convertible debenture (NCD) issuances included Bangalore International Airport (Rs 90 billion via the largest unlisted private placement), NTPC Limited (Rs 40 billion), Torrent Power (Rs 20 billion), and Indian Renewable Energy Development Agency (Rs 4.53 billion via perpetual bonds at 7.70 per cent).
- In a first, India Infrastructure Finance Company Limited mobilised Rs 18.48 billion via a domestic bond at 7.25 per cent.
- PFC filed to raise Rs 50 billion via the first tranche of a public issue of secured NCDs.
- Nashik Municipal Corporation listed green municipal bonds worth Rs 2 billion.
Assets changing hands
- Major acquisitions included Inox Clean Energy’s acquisition of Vibrant Energy for Rs 50 billion and IndoSpace Core’s acquisition of six industrial parks for Rs 30 billion. Other transactions included Ashoka Buildcon’s partial stake acquisition in Ashoka Concessions for Rs 8.82 billion, Maple Infrastructure Trust’s purchase of five highway assets for Rs 8.14 billion, CLINT’s Rs 7 billion data centre stake divestment, and NDR InvIT’s Rs 2.60 billion warehouse acquisition.
- TPG, along with ICICI Bank and GIC, agreed to buy Aseem Infrastructure Finance Limited for Rs 40 billion.
- Adani Infrastructure completed the acquisition of a 34.41 per cent stake in PSP Projects, and signed an SPA to fully acquire DP Jain TOT Toll Roads for Rs 13.42 billion.
- The Government of Telangana signed an SPA to acquire L&T Metro Rail Limited through Hyderabad Metro Rail Limited for Rs 14.61 billion.
- Torrent Power Limited entered into a definitive agreement to acquire Nabha Power Limited for Rs 68.89 billion.
- Dalmia Bharat acquired debt-ridden Jaiprakash Associates Limited’s cement assets for Rs 28.50 billion.
