KKR’s InvIT Highways Infrastructure Trust raises Rs 8,250 cr debt from Axis Bank, HDFC Bank, ICICI Bank, SBI

HIT currently manages a portfolio with assets under management of Rs 17,000 crore, comprising 16 project stretches and covering a total of 4,640 lane kilometers across nine states.

Highways Infrastructure Trust (HIT), an infrastructure investment trust sponsored by private equity major KKR, has secured Rs 8,250 crore of debt financing from a consortium of private sector lenders, including Axis Bank, HDFC Bank, ICICI Bank, IndusInd Bank and public sector institutions such as State Bank of India, Punjab National Bank and IIFCL.

This financing is one of the largest debt arrangements by an InvIT in India, thus strengthening HIT’s long-term growth prospects, the InvIT said in a statement. The debt financing is structured as a Rupee Term Loan with the loan tenure of upto 17 years.

The funds will be utilized for meeting the financing needs for the acquisition of TOT Bundle 16 from the National Highway Authority of India (NHAI) and a portfolio of 12 road assets from PNC Infratech.

The KKR-PNC agreement, announced in January 2024, is one of the biggest in India’s road sector at an enterprise value of around Rs 9,000 crore.

The portfolio comprises 11 hybrid annuity model (HAM) roads from NHAI, one toll road from the Uttar Pradesh State Highways Authority and represents approximately 3,800 lane kilometres in Rajasthan, Uttar Pradesh, Madhya Pradesh and Karnataka.

The trust is also in the process of acquiring NHAI’s toll-operate-transfer (TOT) bundle-16 for Rs 6,661 crore. The TOT bundle-16 is a 251km stretch on the Hyderabad-Nagpur corridor of NH-44 in Telangana.

“The overwhelming response from banks and NBFCs, including participation from all our existing lenders and the addition of three new financial partners, is a testament to the strong confidence in our business model and growth strategy. This milestone underscores the trust our financial partners and stakeholders have placed in us. The continued support from our lending partners strengthens our ability to pursue strategic opportunities, enhance our portfolio, and drive sustainable long-term growth,” said Gaurav Chandna, executive director and joint CEO, Highways Infrastructure Trust.

Moneycontrol reported on January 8 that the InvIT’s sponsor KKR and its second biggest shareholder Canadian pension fund Ontario Teachers Pension Plan (OTPP) will invest as much as Rs 5,500 crore in the InvIT as equity to fund the acquisition of these two transactions.

Abhishek Chhajer, chief financial officer, Highways Infrastructure Trust, said, “We have successfully secured one of the largest financing arrangements by any InvIT in India, at highly competitive pricing. This ₹8,250 crore facility, linked to external benchmark rates, highlights the confidence of leading banks in our robust business model and growth trajectory. This strategic move strengthens our financial flexibility to drive value creation for our unitholders.”

HIT currently manages a portfolio with assets under management of Rs 17,000 crore, comprising 16 project stretches and covering a total of 4,640 lane kilometers across nine states.