Two Indian infrastructure
investment trusts (InvITs) plan to raise a total of over 26
billion rupees ($297 million) through debut bond issues between
October and November, according to banking sources, joining a
growing list of such vehicles tapping the debt market for
fundraising.
Oriental Infratrust aims to raise 8.3 billion rupees through
a combination of three-year and over 14-year bonds, while IRB
InvIT Fund is targeting an 18 billion-rupee issue through five-
and 10-year bonds, the three bankers said on Friday.
The planned issuances are rated ‘AAA’ by rating agencies
including Crisil, India Ratings and Care Ratings.
The InvITs did not respond to Reuters’ emails seeking
comment, while the bankers requested anonymity as they are not
authorised to speak to the media.
InvITs are investment schemes similar to mutual funds that
allow individuals and institutions to directly invest in
infrastructure projects.
Investors in InvITs earn a share of the income generated
from dividends and capital gains from the appreciation of the
units they own, making them an alternative investment option.
Ten InvITs have raised funds through corporate bonds since
this structure was launched a decade ago, with Sustainable
Energy Infra Trust and Capital Infra Trust making their debut
issues earlier this year.
Overall, 27 are registered with Securities Exchange Board of
India (SEBI), the markets regulator. They managed assets worth
more than 7 trillion rupees as of March-end, with a market
capitalisation of 2.40 trillion rupees, according to Bharat
InvITs Association (BIA).
These vehicles have outstanding debt of 530 billion rupees,
according to data aggregator Prime Database, with over 65% of it
issued in financial years 2025 and 2026.
($1 = 87.7250 Indian rupees)