Linklaters advises on India’s largest road monetisation project by National Highways Authority of India

Linklaters acted as international legal counsel to National Highways Infra Trust (InvIT) and its sponsor, National Highways Authority of India (NHAI), in relation to an initial placement of units in the InvIT through a private placement. This transaction represents India’s largest road monetisation project listed on the National Stock Exchange and Bombay Stock Exchange. It is also the first private placement of units by a regulatory authority in India.

As part of the National Monetisation Programme announced by the Government of India, this transaction is the first step to monetise India’s road projects. The InvIT undertook an initial offer of 499,600,000 units by way of a fresh issue, through a private placement totalling to INR 50,460m (approx. US$670m). The trust attracted two marquee international pension funds, Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board, who will each hold a 25% stake each in the InvIT.

The InvIT has been established to monetise road projects, with an initial portfolio of five operating toll roads under 30-year concessions. The portfolio spans approximately 390 km across four Indian states: Gujarat, Karnataka, Rajasthan and Telangana.

The Linklaters team was led by Head of South and Southeast Asia Capital Markets partner, Amit Singh, with support from counsel Joseph Wolpin.

Capital Markets partner Amit Singh commented:

“We are honoured to have been the international legal counsel to NHAI and grateful for the trust and confidence they have placed in us. The launch of the InvIT represents a key milestone in further developing India’s infrastructure and we hope it supports the country’s continued economic growth.”

Linklaters has an established reputation as the leading Indian capital markets practice, offering technical expertise and commercial awareness to create novel solutions to maximise investment opportunities. The team has worked with India’s leading corporates as they invest both within and outside India across a wide range of sectors.