National Stock Exchange of India Ltd (NSE), India’s leading stock exchange through its Electronic Bidding Platform (NSE- EBP) facilitated single largest debt issuance of around Rs 1, 675 crore by an Infrastructure Investment Trust (InvIT) on March 6, 2020. The funds pay-in for the deal concluded on the 11 March 2020.
SEBI had permitted InvITs and REITs to issue debt securities in April 2018. Subsequently, in a bid to attract more investors and optimise the returns for the Infrastructure Investments Trusts, the market regulator raised the leverage limit for InvITs from 49 per cent to 70 per cent.
Under the said regulation, 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 of 9.04 per cent over a maturity period of 18 years i.e. March 2038. NSE-EBP aims to bring efficiency and transparency in the price discovery mechanism and reduce the time and cost of debt issuances on a private placement basis.
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