KKR-Backed HIT Secures ₹8,250 Crore Loan to Boost Road Development Projects
The infrastructure development in India, Highways Infrastructure Trust (HIT), an infrastructure investment trust backed by global investment firm KKR, has successfully secured ₹8,250 crore in debt financing. This large-scale funding is structured as a rupee term loan with a tenure extending up to 17 years, with seven major financial institutions providing their backing. The institutions involved in this deal include Axis Bank, HDFC Bank, ICICI Bank, India Infrastructure Finance Company, IndusInd Bank, PNB, and the State Bank of India (SBI).
The funds will primarily be utilised to meet the financing requirements for two critical projects: the toll-operate-transfer (TOT) Bundle 16, covering a major stretch of the Hyderabad-Nagpur corridor, and the acquisition of road assets from PNC Infratech. This strategic move will further solidify HIT’s position in India’s growing infrastructure sector. HIT has already placed a winning bid for the TOT Bundle 16 project, which covers a 251-kilometre stretch along the Hyderabad-Nagpur corridor of National Highway 44 (NH-44) in Telangana. This highway project is a key part of the government’s plan to upgrade and modernise road networks across the country, helping to reduce travel time and improve connectivity between major cities. The funding will help facilitate the necessary improvements, expansions, and toll operations across the stretch.
Moreover, HIT has entered into a deal to acquire a dozen road assets from PNC Infratech, further extending its footprint in the road infrastructure space. These acquisitions align with HIT’s long-term strategy of building a robust portfolio of road assets that contribute to India’s growing infrastructure development needs. The deal has received a strong endorsement from the financial sector, as it highlights confidence in the long-term potential of India’s road infrastructure. The participation of major banks such as Axis Bank, HDFC Bank, ICICI Bank, and others demonstrates the faith that leading financial institutions have in the development of India’s highway network, and their recognition of the pivotal role infrastructure investment trusts like HIT play in the country’s economic growth.
India’s road infrastructure is crucial to its economic progress. With a population exceeding 1.4 billion and a rapidly growing economy, road connectivity plays a vital role in facilitating trade, commerce, and daily travel. In this context, the development of highway networks like the Hyderabad-Nagpur corridor is of paramount importance. For KKR-backed HIT, this financial injection will enable the execution of critical projects that could have a lasting impact on India’s infrastructure landscape. Through partnerships with leading financial institutions and a clear focus on high-potential assets like TOT Bundle 16 and road acquisitions from PNC Infratech, HIT is poised to continue its role in shaping India’s transportation and infrastructure future.
This ₹8,250 crore funding underscores the growing importance of private investment in India’s infrastructure sector, highlighting the increased involvement of global investors like KKR. As road projects continue to be a key focus for the Indian government, HIT’s success in securing this loan ensures that it is well-positioned to play a critical role in the country’s infrastructure growth story in the coming years. The funding will not only drive essential infrastructure development but also stimulate economic activity by improving connectivity, creating jobs, and boosting local economies in the regions surrounding the Hyderabad-Nagpur corridor and other road assets. It’s a promising move that signals greater momentum towards India’s infrastructure expansion and development goals.