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The infrastructure investment trust IRB InvIT Fund is set to launch its first bond offering, aiming to raise a total of INR 11.50 billion (approximately USD 130.84 million). The issue will consist of three tranches: INR 5.75 billion for five-year maturity at a 7.35% coupon, INR 3 billion for ten years at 7.40%, and INR 2.75 billion for 15 years (with staggered redemptions from 2036) at the same 7.40% rate. Coupons are payable quarterly, and a put/call option is included for the 15-year bond after ten years. The trust has invited bids from bankers and investors on the coming bidding date, and the offering carries a "AAA" rating from India Ratings & Research.
The IRB InvIT Fund plans to raise INR 11.50 billion via its maiden bond issuance, according to three merchant bankers involved in the deal. The issue is structured in three parts: one tranche of INR 5.75 billion with a five-year tenure at a coupon of 7.35%, a second tranche of INR 3 billion with a ten-year maturity at 7.40%, and a third tranche of INR 2.75 billion with a 15-year repayment schedule and an annual coupon of 7.40%. The 15-year bonds will feature a put/call option after ten years. For all three tranches, the coupons are payable quarterly. The bond issue has been rated "AAA" by India Ratings & Research. The trust has invited bids from banks and investors on the bidding date set for the coming days. The trust did not respond to requests for comment. Advertisement
Earlier, InvITs (infrastructure investment trusts) in India have tapped the debt market to finance large projects by raising funds through debenture-type issuances. Earlier this year, IRB InvIT Fund had acquired three BOT highway assets from its sponsor, IRB Infrastructure Developers Limited, for INR 4,905 crore (INR 49.05 billion), thereby increasing its asset scale and extending portfolio life. That move underscored the trust's strategy of acquiring income-generating road assets with long lives. The current bond issuance appears aligned with that strategy of securing long-term, fixed-income funding to back its infrastructure portfolio.
Given the structure of three tenors, quarterly coupons, and a 15-year tranche with a call/put feature-the issue seems designed to appeal to institutional investors seeking predictable cash flows and credit-rated infrastructure exposure. The "AAA" rating is likely to enhance investor confidence. If successful, the trust will join a growing number of InvITs raising debt to finance infrastructure assets in India's roads and highways space.
Source Reuters
5th Jun, 2025
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