HIT owns a portfolio of 13 operational road SPVs (eight toll, three hybrid annuity model (HAM) and two annuity) with a total length of about 894.3 km across nine states, according to rating agency India Ratings. Furthermore, HIT is acquiring 12 SPVs of PNC Infratech and PNC Infra Holdings.
The long-term issuer and term loan rating of “AAA” is underpinned by HIT’s well-diversified project portfolio, a long operational history, pooling of cash flows from all projects, comfortable debt service coverage ratios (DSCRs) and robust debt structural features, India Ratings said in a statement. The trust is sponsored by Galaxy Investments II Pte Ltd, a unit of Kohlberg Kravis Roberts & Co LP (KKR), for holding operational road assets in India.
The debt will be utilised for on-lending to SPVs and towards the refinancing of sub-debt infused.
The proposed debt has a Debt Service Reserve Account (DSRA) of ensuing three months’ principal and interest and also stipulates maintenance of a Major Maintenance Reserve (MMR) of ensuing three months. The rating agency said HIT’s liquidity is adequate and it expects the entity to generate surplus cash flows annually.
The InvIT has a total debt of ₹7,425 crore sanctioned in the form of term loans, non-convertible debentures (NCDs) and commercial papers (CPs). As of March 2025, about ₹3,416.59 crore of term loans, ₹1,133.75 crore of listed NCDs and ₹275 crore of listed CPs have been used for refinancing and prepayment of loans and debt of entities. About ₹2,395.15 crore of term loans are yet to be drawn. They are proposed to be partly utilised for the acquisition of PNC’s SPVs.
HIT’s revenues from operations more than doubled to ₹1,412.7 crore in FY24 from ₹615.23 crore in FY23. Its finance cost rose to ₹265.22 crore in FY24, up from ₹219.05 crore in FY23. The cash and equivalents grew to ₹948.59 crore in FY24 from ₹189.66 crore in FY23.
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