Capital Infra Trust Raises Rs 2,363 Crore Through Debt Securities
The infrastructure investment trust sector witnessed a significant development as Capital Infra Trust announced raising an impressive Rs 2,363 crore through debt securities. This strategic financial move aims to strengthen the trust's financial position and optimize its capital structure.
Strategic Debt Issuance Details
Capital Infra Trust, an infrastructure investment trust established in September 2023, has successfully completed two major debt issuances:
- Allotment of 1,16,300 senior secured redeemable, non-convertible debt securities (NCDs), each with a face value of Rs 1,00,000
- Total value of first issuance: Rs 1,163 crore (completed on March 4, 2025)
- Securities rated 'AAA stable' by CRISIL
- Named 7.60 per cent CIT 2038, with maturity date of January 29, 2038
In a parallel development, the trust also announced the allotment of 1,20,000 secured listed redeemable non-convertible debt securities on a private placement basis. These NCDs, also carrying a face value of Rs 1,00,000 each, contributed an additional Rs 1,200 crore to the total funds raised.
Key Financial Institutions Backing the Trust
The trust has garnered significant support from leading financial institutions:
- HDFC Bank and IndusInd Bank have subscribed to the first NCD issuance
- India Infrastructure Finance Company Limited (IIFCL) and ICICI Bank fully subscribed to the second issuance
This widespread institutional backing demonstrates strong market confidence in Capital Infra Trust's business model and growth trajectory.
Strategic Utilization of Funds
The funds raised through these debt issuances will serve multiple strategic purposes:
- Refinancing high-cost debt instruments of project SPVs
- Optimizing interest rates on existing loans
- Enhancing investor yields
- Supporting long-term growth initiatives
Manish Satnaliwala, CEO of Capital Infra Trust, expressed optimism about the successful debt raising, stating: "The successful allotment of both the Series of NCDs marks a pivotal moment for us, demonstrating the investment community's trust in our robust financial strategy and growth potential. This move will help in building new benchmarks, enhance returns, and ensure long-term sustainability."
First Distribution Announced
In another positive development for investors, Capital Infra Trust declared its first distribution of Rs 12.71 per unit as Return on Capital on February 27. This distribution comprises:
- Rs 0.11 per unit as interest
- Rs 11.22 per unit as taxable dividend
- Rs 1.38 per unit as exempt dividend
This interim distribution is applicable to eligible unitholders for part period of the third quarter of the current fiscal year.
About Capital Infra Trust
Capital Infra Trust InvIT is sponsored by Gawar Construction Limited, a company with extensive experience in constructing road and highway projects across 19 states in India. The trust focuses on investments in infrastructure projects, primarily NHAI road projects, through acquisitions from sponsors and third parties.
Established in September 2023, the InvIT operates under SEBI InvIT Regulations and is positioned to engage in various infrastructure investment activities. The sponsoring company has built a strong reputation through its work with various government bodies, including the NHAI, MoRTH, MMRDA, and CPWD.
This strategic debt raising positions Capital Infra Trust to optimize its capital structure while continuing to invest in high-quality infrastructure assets across India.
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