India Inc seeks to pare debt via InvITs as foreigners are keen to invest

High interest rates, low-risk model key attractions for overseas investors

As India’s largest corporation Reliance Industries (RIL) gets ready to launch its third infrastructure trust (InvIT) to raise funds and reduce the firm’s group debt, bankers said InvITs are not only helping India Inc reduce their debt and finance costs, but are also giving attractive returns to the unitholders — consisting mainly of long-term foreign investors.
 
“It’s a win-win deal. While Indian companies reduce debt without actually selling the entire stake, it gives an opportunity to unitholders to get high returns without owning the asset,” said a banker.
 
Several other Indian companies including Vodafone Idea, National Highways Authority