Three Indian infra investment trusts eye $500 million debt in coming weeks, sources say

Three Indian infrastructure investment trusts, including the National Highways Infrastructure Trust, are planning to raise up to 43 billion rupees ($499 million) through corporate bonds in the coming weeks, three sources familiar with the matter said.

NHIT is in talks with merchant bankers and investors to raise around 15 billion rupees through three-year bonds, the sources, who did not want to be named because the discussions are private, said.

Cube Highways Trust is likely to tap the market for about 10 billion rupees in debt, with maturities ranging between three and five years.Grip Invest launches auto compounding investment product for bond investors

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Meanwhile, IRB Infrastructure Trust is preparing for its debut bond issuance, targeting roughly 18 billion rupees through a dual-tranche offering with five and 10-year tenors. None of the infrastructure investment trusts, or InvITs, responded to Reuters emails seeking comment.

InvITs typically raise capital through a combination of units and bonds.

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Bond issuances have gained traction in recent months amid falling yields. According to Prime Database, InvITs and real estate investment trusts (REITs) together raised more than 178 billion rupees in the January-June period. All three InvITs are in discussions with investors, including the International Finance Corporation, which has previously invested in debt issued by several InvITs, including Cube Highways, according to a termsheet from an earlier offering. NHIT last tapped the bond market in January, while Cube Highways raised funds through bonds in April.

Insurance firms and pension funds participated in NHIT’s previous bond offering, and the sources said they expect mutual funds to show interest this time, given that the tenor aligns with their investment horizon.

($1 = 86.3825 Indian rupees)

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