Two Indian infra investment trusts plan debut bond sale in coming weeks, bankers say

MUMBAI: Two Indian infrastructure investment trusts (InvITs) plan to raise a total of over 26 billion rupees ($297 million) through debut bond issues between October and November, according to banking sources, joining a growing list of such vehicles tapping the debt market for fundraising.

Oriental Infratrust aims to raise 8.3 billion rupees through a combination of three-year and over 14-year notes, while IRB InvIT Fund is targeting an 18 billion-rupee issue through five- and 10-year bonds, the three bankers said on Friday.

The planned issuances are rated ‘AAA’ by rating agencies including Crisil, India Ratings and Care Ratings.

The InvITs did not respond to Reuters’ emails seeking comment, while the bankers requested anonymity as they are not authorised to speak to the media.

InvITs are investment schemes similar to mutual funds that allow individuals and institutions to directly invest in infrastructure projects.

Investors in InvITs earn a share of the income generated from dividends and capital gains from the appreciation of the units they own, making them an alternative investment option.

Ten InvITs have raised funds through corporate bonds since this structure was launched a decade ago, with Sustainable Energy Infra Trust and Capital Infra Trust making their debut issues earlier this year.

Overall, 27 are registered with Securities Exchange Board of India (SEBI), the markets regulator. They managed assets worth more than 7 trillion rupees as of March-end, with a market capitalisation of 2.40 trillion rupees, according to Bharat InvITs Association (BIA).

These vehicles have outstanding debt of 530 billion rupees, according to data aggregator Prime Database, with over 65% of it issued in financial years 2025 and 2026.