Capital Infra Trust calls raising Rs 2,363 cr via NCDs to refinance debt

Infrastructure investment trust Capital Infra Trust has announced raising Rs 2,363 crore through debt securities to strengthen its financial position.

Established in September 2023, Capital Infra Trust InvIT is sponsored by Gawar Construction Limited. It has investments in infrastructure projects primarily in NHAI road projects through acquisition from sponsors and third parties  "The trust announced the successful allotment of 1,16,300 senior secured redeemable, non-convertible debt securities (NCDs), each with a face value of Rs 1,00,000, aggregating to Rs 1,163 crores on March 4, 2025," Capital Infra Trust said in a release.

These securities, rated 'AAA stable' by CRISIL and named 7.60 per cent CIT 2038, will mature on January 29, 2038.

It further said HDFC Bank and IndusInd Bank have subscribed to the NCD, which aims to enhance investor yields by refinancing high-cost debt instruments of the project SPVs.

The entity also said it has allotted 1,20,000 secured listed redeemable non-convertible debt securities (NCDs) on a private placement basis, each with a face value of Rs 1,00,000, totalling Rs 1,200 crore.

"The funds raised through this issuance will optimize the interest rate by refinancing existing loans and debt instruments of the Project SPVs. The NCDs were fully subscribed by new lenders, namely India Infrastructure Finance Company Limited (IIFCL) and ICICI Bank," it said.

"The successful allotment of both the Series of NCDs marks a pivotal moment for us, demonstrating the investment community's trust in our robust financial strategy and growth potential. This move will help in building new benchmarks, enhance returns, and ensure long-term sustainability," said Manish Satnaliwala, CEO of Capital Infra Trust.

The company also said it has declared the first distribution (February 27) of Rs 12.71 per unit as Return on Capital comprising Rs 0.11 per unit as interest, Rs. 11.22 per unit as taxable dividend, Rs 1.38 per unit as exempt dividend as an interim distribution to the eligible unitholders for part period of the third quarter of the fiscal.

Capital Infra Trust said the InvIT was established to engage in activities and make investments as an infrastructure investment trust, as allowed under the SEBI InvIT Regulations.

It said the sponsoring company specialises in constructing road and highway projects across 19 states in India for various government bodies, including the NHAI, MoRTH, MMRDA, and CPWD.