NHAI Completes Largest InvIT Monetization of Over US$ 1.9 billion (Rs. 16,000 Crore) Through ‘Round 3’

The National Highways Infra Trust (NHIT), under the sponsorship of the National Highways Authority of India (NHAI), recently concluded its third round of fund-raising, titled 'InvIT Round-3'. This initiative targeted National Highway stretches covering 889 kilometers, achieving an Enterprise Value exceeding US$ 1.9 billion (Rs. 16,000 Crore). This marks NHAI's largest monetization effort and is a significant milestone in India's road sector. The issuance of the Letter of Acceptance (LOA) for this endeavor, aimed at securing the highest-ever concession value through 'InvIT Round-3', was completed in February 2024.

NHIT successfully raised unit capital of about US$ 876.1 million (Rs. 7,272 crore) from esteemed domestic and international investors, complemented by debt totaling around US$ 1.1 billion (Rs. 9,000 crore) from Indian lenders. These funds facilitated the acquisition of National Highway stretches, generating a base concession fee of approximately US$ 1.9 billion (Rs. 15,625 crore), with additional concessional fees amounting to US$ 9 million (Rs. 75 crore). Investors demonstrated robust interest, subscribing to units at a cut-off price of Rs. 124.14 per unit, representing a premium over the current Net Asset Value (NAV). Existing and new investors participated in this successful fundraising round, including foreign pension funds, domestic pension/provident funds, insurance companies, mutual funds, banks, and NHAI itself.

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