NHAI InvIT's institutional placement worth $1.9 billion sparks action from JSA and CAM
National Highways Authority of India's InvIT Secures $1.9 Billion in Funds
The National Highways Authority of India's (NHAI) Infrastructure Investment Trust (InvIT) has successfully raised funds to the tune of $1.9 billion. This marks a significant milestone as it represents the first institutional placement of units by an InvIT in India.
The InvIT model, similar to mutual funds, is designed to attract investments from various sources and invest these funds in infrastructure assets. The NHAI InvIT will use the proceeds from this fundraising to fund the acquisition of three road assets.
J Sagar Associates (JSA) acted as counsel to the lead managers in the NHAI's fundraising, while Cyril Amarchand Mangaldas provided legal advice to the InvIT itself. Arka Mookerjee led the JSA team, with Pracheta Bhattacharya providing support.
Cyril Amarchand Mangaldas has also been actively involved in other infrastructure-related transactions. For instance, they recently advised investors on a debt issuance of INR 750 crore by Sustainable Energy Infra Trust. This transaction involved senior, secured, rated, listed, redeemable non-convertible debt securities issued to refinance existing facilities and cover transaction expenses.
Other developments in the InvIT sector include Cube Highways Trust (Cube InvIT) raising ₹820 crore through a bond issue, showcasing the ongoing activity in Indian InvITs. However, the RBI's recent guidelines affecting regulated entities' investments in Alternative Investment Funds (AIFs) may influence the broader financial landscape for infrastructure investment trusts.
The RBI's Project Finance Directions 2025 aim to enhance project financing, which could potentially benefit infrastructure projects, although specific details on InvITs are not mentioned. Despite this, the success of the NHAI's InvIT fundraising underscores the growing interest and confidence in infrastructure investment trusts in India.
The National Highways Authority of India's Infrastructure Investment Trust (InvIT) raised funds for the acquisition of three road assets, indicating a growing interest in investing in infrastructure businesses. The law firm, Cyril Amarchand Mangaldas, has been actively involved in various infrastructure-related transactions, including the recent debt issuance by Sustainable Energy Infra Trust.
