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KKR Launches Highways Infrastructure Trust in India, its third infrastructure investment trust in the country

KKR’s three infrastructure investment platforms operate and manage 33 assets valued at over $3.8 billion across India’s 22 states or union territories

KKR Launches Highways Infrastructure Trust in India, its third infrastructure investment trust in the country
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POSTED ON September 03, 2022 10:40 AM

Global investment firm KKR has launched the Highways Infrastructure Trust (HIT), a roads infrastructure investment trust (InvIT). It is KKR’s third InvIT in India, in addition to Virescent Renewable Energy Trust and India Grid Trust. Together, these platforms operate and manage 33 assets valued at over $3.8 billion across 22 states or union territories across India.

HIT’s initial portfolio comprises six road assets with a total length of more than 450 kilometers across six states in India. The assets, which include a diversified mix of toll and annuity roads, are located in Gujarat, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu and Telangana. 

In addition, HIT is considering a pipeline of acquisition targets, including through its sponsor. Possessing significant growth potential, according to the company, this InvIT seeks to invest in high-quality assets, including through bolt-on acquisitions.

HIT’s launch is on the back of growing demand to expand India’s road network, the second-largest globally, as passenger and commercial vehicle traffic continues to increase. Today, India’s road network is responsible for 90 per cent of total passenger traffic and the movement of almost 65 per cent of all goods across the country, according to India Brand Equity Foundation’s Roads Industry Report in August 2022. 

Hardik Shah, Partner at KKR, said, “Highways and roads play a critical role in driving India’s economic prosperity and connecting its citizens, and we look forward to enabling further infrastructure creation and expansion as transportation demands continue to grow. With our dedicated platforms across transmissions, roads, and renewables in place, KKR is well-positioned to collaborate with sellers in the private markets and the government through the National Monetisation Pipeline on attractive investment opportunities.”

In Asia Pacific, KKR takes a flexible approach to infrastructure investment and combines local knowledge and capabilities with the Firm’s global industry and operational expertise. Globally, its infrastructure portfolio spans a broad range of sectors, including transportation, renewable energy, power and utilities, water and wastewater, and telecommunications. It manages more than $40 billion in assets.

In India, KKR sees transportation, renewable energy, and electricity transmissions as core to its infrastructure strategy. Since setting up its Mumbai office in 2009, the global investment firm has made more than 20 investments in India, with more than a dozen active portfolio companies today.

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