Our Valued Unitholders
At the outset I extend my best wishes to you and hope you are safe!
It is my first interaction with you and it is my pleasure to present to you the firstannual report of PGInvIT India's first InvIT by a Government entity.
FY 2021-22 has been an exciting first year for PGInvIT. Starting from executing India'slargest InvIT IPO by a Govt. entity which received overwhelming response from investorsto operating assets efficiently and making distributions as committed we have commencedour journey on the path of providing consistent stable and visible returns to ourunitholders.
Performance Powered by AAA
The completion of first year also reinforces our belief and optimism in our uniquevalue proposition of AAA - Assets Assurance and Advantage.
The five TBCB Assets housed under five Special Purpose Vehicles that we own are fullyoperational and revenue generating and have consistently exhibited sound operational trackrecord. The Assurance comes in the form of Fixed tariffs for 35 years period withoutregulatory risk and the backing of an experienced world-class Sponsor and ProjectManager POWERGRID. I am sure with their expertise in operating and managing powertransmission assets the InvIT assets will continue to achieve high availability. BesidesSponsor's large pool of transmission assets and monetisation targets under NationalMonetisation Pipeline backed by our low leverage provides us a distinct Advantage. Inaddition the Availability-based tariffs and incentives provide additional Advantage toPGInvIT ensuring stability.
Delivering on Commitments
PGInvIT aims to deliver returns to its unitholders through operational efficiency and agrowth strategy that is value accretive. In this direction I am happy that in the firstyear PGInvIT has been able to achieve both.
Riding on excellent operational performance despite a challenging environment due toCOVID-19 pandemic the Trust declared three consecutive distributions aggregating '10.5per unit for the year and made two acquisitions funded largely through debt raised atvery competitive rates.
We are happy to note that the investors' confidence in PGnvIT continues post-IPO also.We look forward to our investors' continued support.
We remain focussed on capitalising on our strengths and on the opportunities emergingfrom GoI's monetisation thrust and yearly monetisation targets for our Sponsor to createvalue for our investors and to deliver on our growth strategy.
We envisage acquisition of residual 26% equity stake of our Sponsor in PKATL afterJuly 2022 in accordance with the transmission service agreements. We are looking forwardto Sponsor's monetisation programme for the year 2022-23 while simultaneously scouting foropportunities outside of POWERGRID.
We thank GoI for creating an enabling environment for emergence of infrastructureinvestment trusts as a unique financial instrument which can provide stable returns toinvestors over the long term. With their ability to channelise long-term global financialcapital InvITs can support investment cycle in the country. We would also like to thankSEBI and other govt. agencies like the IRDAI PFRDA for their policy decisions which wouldgo a long way in increasing the liquidity and providing access to long tenure debt. Thesebode well for the progress of the nation while providing an avenue for all types ofinvestors seeking predictable returns.
Our first Chairman Smt. Seema Gupta demitted the office on May 31 2022 upon hersuperannuation from POWERGRID. We would like to place on record our deep appreciation andgratitude for her invaluable contribution and guidance during both pre and post IPO periodof PGInvIT. We would also like to express our gratitude to Mr. M. N. Venkatesan and Mr.Sunil Kumar Sharma whose tenure as Independent Directors ended during the year. Theirexperience knowledge guidance and support despite the pandemic played a key roleespecially during our initial public offer.
I look forward to working with my colleagues on the Board and the management team atPGInvIT to keep working towards making PGInvIT a rewarding investment for our investors.
Thank you for being a part of PGInvIT story.