Canadian pension funds pick up 50% units in NHAI's InvIT

The National Highways Authority of India's (NHAI) newly launched infrastructure investment trust (InVIT) has attracted the Canada Pension Plan Investment Board (CPPIB) and the Ontario Teachers' Pension Plan Board (OTPPB) as anchor investors. They will hold 25% of the units each. The balance units were placed with a set of domestic institutional investors comprising pension funds, insurance companies, mutual funds, banks and financial institutions. The InVIT is part of the government's national monetization pipeline, which will initially have a portfolio of five operating toll roads with an aggregate length of 390 km, and an enterprise value of INR 8,011.52 crore. It will be funded through a INR 2,000 crore debt from State Bank of India, Axis Bank and Bank of Maharashtra. The balance will be funded through NHAI-sponsored units of INR 6,011.52 crore to international and domestic institutional investors.