Highways Infrastructure Trust (HIT), a SEBI-registered infrastructure investment trust (InvIT), has secured ₹8,250 crore in debt financing, making it one of the largest such arrangements.
This funding will be used to operate a 251-kilometer stretch of the Hyderabad-Nagpur corridor of NH-44 in Telangana, as well as 12 other road projects, 11 of which are national highway hybrid annuity mode (HAM) assets and one state highway BOT (build, operate, transfer) project totaling 3,800 kilometers across Karnataka, Madhya Pradesh, Rajasthan, and Uttar Pradesh. PNC Infratech previously held these 12 assets.
"Axis Bank, HDFC Bank, ICICI Bank, India Infrastructure Finance Company Limited (IIFCL), IndusInd Bank, Punjab National Bank (PNB), and State Bank of India (SBI) have all supported this financing, which is structured as a rupee-term loan with a loan tenure of up to 17 years. HIT's portfolio includes 16 project stretches totaling approximately 4,640 lane kilometers across nine states," according to a statement.
Gaurav Chandna, executive director and joint CEO of HIT, announced the successful tie-up of rupee term loan facilities amounting to ₹8,250 crore. "The overwhelming response from banks and NBFCs, including all of our existing lenders and the addition of three new financial partners, demonstrates their strong belief in our business model and growth strategy. This milestone demonstrates the confidence that our financial partners and stakeholders have in us. Our lending partners' continued support enhances our ability to pursue strategic opportunities, expand our portfolio, and drive long-term growth. We are committed to upholding this trust through disciplined execution and value creation."
The National Highways Infra Trust (NHIT), an investment trust of the National Highway Authority of India, operates in accordance with the national monetisation plan, as do other private entities in the sector.
NHIT is being used by the NHAI to repay high-interest loans from commercial banks for highway operations and raise funds from the market in accordance with the national monetization plan. In March 2024, NHIT accumulated a debt of approximately ₹ 9,000 crore.
