NSE facilitates single-largest debt issuance by InvIT

The National Stock Exchange (NSE) on Thursday said it has facilitated the single-largest debt issuance of around Rs 1,675 crore by an infrastructure investment trust (InvIT) on its platform.

The exchange, through its electronic bidding platform (NSE-EBP), facilitated the issuance on March 6 and the funds pay-in for the deal concluded on March 11.

Larsen & Toubro-sponsored IndInfravit Trust allocated Rs 1,675 crore on the NSE-EBP for financing its road asset acquisitions from Sadbhav Infrastructure Project.

These bonds issued by IndInfravit will be listed on NSE and carry a fixed coupon of9.04 per cent over a maturity period of 18 years, that is March 2038, the exchange said in a statement.

 

The platform is aimed at bringing efficiency and transparency in the price discovery mechanism and reduce the time and cost of debt issuances on a private placement basis.

In April 2018, markets regulator Sebi had permitted InvITs and real estate investment trusts (REITs) to issue debt securities. Subsequently, in a bid to attract more investors and optimise the returns for InvITs, the regulator raised the leverage limit from 49 per cent to 70 per cent.