Two Canadian pension fund houses — Canadian Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board — will pick up a 25% stake each in the maiden Infrastructure Investment Trust (InvIT) of the National Highways Authority of India (NHAI).
“The balance units were placed with a diversified set of domestic institutional investors comprising pension funds, insurance companies, mutual funds, banks and financial institutions,” the authority said in a statement.
Given the long-term nature of the assets, the units of InvIT were placed with international and domestic institutional investors. The units have been issued under the private placement route under SEBI InvIT Regulations, 2014 at the upper valuation band of Rs 101 per unit. The units will be listed on NSE and BSE after Diwali.
The NHAI InvIT will initially hold five stretches with a cumulative length of 389 km. The stretches, part of NH-27, NH-44 and NH-48, are spread across Gujarat, Rajasthan, Karnataka, Maharashtra, Telangana and Andhra Pradesh. More road stretches are planned to be added later.
The total enterprise value of the five roads was pegged at Rs 8,011.52 crore. NHAI InvIT is funding that through debt of Rs 2,000 crore from State Bank of India, Axis Bank and Bank of Maharashtra.
The balance is being funded by issuing units of Rs 6,011.52 crore to international and domestic institutional investors, and NHAI as a sponsor. The sponsor will retain, as a rule, a 15% stake in the InvIT for three years.
The InvIT, launched on October 29, was closed for a subscription. The Board of the Investment Manager of the NHAI InvIT met Wednesday to decide on the allocation of units to investors.