Ontario Teachers’ completes third investment into National Highways Infra Trust

Ontario Teachers’ Pension Plan Board (Ontario Teachers’) announced the allocation of its existing 25% stake in the follow-on unit capital raise of National Highways Infra Trust (NHIT). NHIT is an Infrastructure Investment Trust (InvIT) sponsored by the National Highways Authority of India (NHAI), the Government of India’s nodal agency for national highway development.

Ontario Teachers’ invested Rs 18.2 billion/CAD 298 million for its follow-on stake. This investment, together with Ontario Teachers’ earlier investments in NHIT in 2021 and 2022, takes its total investment in NHIT to Rs 36.8 billion/CAD 606 million.

NHAI as the sponsor has also invested 15% in the follow-on capital raise, while the balance units were placed with a diversified set of foreign and domestic institutional investors comprising pension funds, insurance companies, mutual funds, banks and financial institutions. Proceeds from the subscription of units will be primarily used to pay NHAI as a concession fee to be utilized for further development of road infrastructure in India.

Proceeds from the follow-on unit capital raise will be primarily used to acquire seven additional road concessions across central, eastern, and southern India. Following this, NHIT would own, operate, and maintain a portfolio of 15 toll roads in the Indian states of Assam, Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, Telangana, Uttar Pradesh, and West Bengal spanning a total length of 1,525 km and a concession period ranging between 20 to 30 years.

“Our investment into NHIT demonstrates Ontario Teachers’ continued support in developing high-quality road assets in India,” said Debapratim Hajara, Managing Director, Infrastructure & Natural Resources, Asia Pacific, Ontario Teachers’. “The country’s road ecosystem is an important driver in supporting India’s economic growth and we are delighted to continue our partnership with the NHAI.”