InvIT
About the Client
  • The Group recently set up a SEBI registered Infrastructure Trust (InvIT) for road assets.
  • The Group has a mix of 24 road projects (HAM, Toll & Annuity model) under 24 SPVs having presence across 5 States in India.
  • The outstanding debt to be liquidated was Rs 4100 Cr at the time of formation of InvIT in 24 SPVs which were financed by 16 lenders with different terms & conditions.
Our Services
  • It was a new concept with regards to the structure & financing of such InvIT as it was the first InvIT offering Hybrid Annuity Model (HAM) road projects in India.
  • Being a new & complex structure, clarity on model was given to the lenders at various level through presentation including applicable guidelines and convinced the lender in taking complete exposure under sole banking.
  • Analysis & appraisal of all the proposal relevant documents & financial model and suggestions for improvement in the model as per the requirements of the lender.
  • Coordination and negotiation on professional fee with various third parties viz; legal, Enterprise valuation, Due Diligence, etc. for finalization and timely submission of reports for all 24 SPVs.
  • Approvals for requested finance at best pricing in the market after negotiation at various levels, waiver of pre-payment penalty, TEV Study of 24 SPVs, etc and ensuring compliance of all pre-sanction conditions.
  • Negotiation for various deviations from InvIT policy and other terms & conditions as per client’s requirement.
  • Successful closer of the transaction despite COVID challenges within 2 months of SEBI approval for setting up InvIT involving 24 companies & sanction of Term loan for liquidating the outstanding debt of 16 lenders with end-to-end solution.
Value addition by Pranjal:
  • Unlocking of Promoter’s equity and providing easy access to raise capital from long term investors at reduced cost of funds.
  • Re-deployment of freed capital into new projects and scope for adding new projects to the InvIT portfolio and reap further benefit.
  • Consolidation of the entire debt under Sole Banking leading to reduction in operational and administrative cost.
  • Reduced cost of borrowing by 30% and deleveraging of the group balance sheet.
  • Increased in tenor of existing loans under InvIT structure
  • High Tax benefit both at SPVs and InvIT level
  • Zero Collateral and release of Personal and Corporate guarantee given earlier.
  • Sanction as per client’s requirement in single shot with zero modification.
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