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Two Indian infra InvITs are set to raise over INR 26 billion (USD 297 million) through debut bond issuances in the coming weeks. Oriental Infratrust is aiming for INR 8.3 billion through three- and 14-year notes, while IRB InvIT Fund plans INR 18 billion via five- and 10-year bonds. Both offerings are rated 'AAA'. InvITs allow investors to earn returns from dividends and capital gains while directly investing in infrastructure projects. The sector has grown steadily, with 27 registered InvITs managing over INR 7 trillion in assets.
Two Indian infrastructure investment trusts are preparing to raise over INR 26 billion (USD 297 million) through their debut bond issuances in the coming weeks. Oriental Infratrust is targeting INR 8.3 billion with a combination of three-year and more than 14-year notes, while IRB InvIT Fund aims to raise INR 18 billion through five- and 10-year bonds, according to banking sources. Both issuances carry 'AAA' ratings from rating agencies including Crisil, India Ratings, and Care Ratings. Advertisement
InvITs are investment structures similar to mutual funds but specifically focus on infrastructure projects. They allow both individual and institutional investors to participate directly in infrastructure assets. Investors earn income from dividends and capital gains generated through the appreciation of units, making these trusts an alternative investment option alongside conventional assets.
Since the launch of the InvIT framework around a decade ago, ten such vehicles have raised funds via corporate bonds. Earlier this year, Sustainable Energy Infra Trust and Capital Infra Trust successfully completed their debut bond issuances. Currently, 27 InvITs are registered with the Securities Exchange Board of India (SEBI). These vehicles managed assets worth over INR 7 trillion as of March-end, with a combined market capitalisation of INR 2.40 trillion, according to the Bharat InvITs Association (BIA).
Data from Prime Database shows that InvITs have outstanding debt of INR 530 billion, with more than 65% issued in financial years 2025 and 2026. Analysts note that these debut bond sales reflect a growing trend of infrastructure trusts using the debt market to raise long-term capital efficiently, providing investors with stable returns in a high-rated debt segment.
Source Reuters
5th Jun, 2025
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