IRB InvIT’s next acquisitions to be debt-funded

Mumbai: IRB InvIT, the infrastructure investment trust floated by IRB Infra, will borrow an additional Rs4,500 crore to add to its roads portfolio from FY20 onwards. InvIT’s current assets under management stand at approximately Rs7,560 crore.

Speaking to Mint, Tushar Kawedia, CFO, IRB Infrastructure Pvt Ltd said: “We won’t be making any acquisitions in FY19, but in FY20, we’ll take on a project from the sponsor IRB’s portfolio. This will be about Rs1,500 crore, taking the assets under management to Rs9,000 crore by the end of FY20.

“We can go up to Rs12,000 crore in assets without diluting equity,” Kawedia added. “The next project will be added in FY20. Then we’ll add another two-three projects FY21 onwards.”

InvIT has a portfolio of toll road concessions in seven operational road assets in Maharashtra, Gujarat, Rajasthan, Karnataka, Tamil Nadu and Punjab. The weighted average life of the assets is around 17 years. The first six highway projects were funded by equity while the seventh was funded entirely with debt sourced at 8.15%.

IRB InvIT reported revenue of Rs1,005 crore for FY18 and Rs299 crore for the fourth quarter of the last fiscal. The InvIT declared distribution of Rs174.15 crores to unit holders, translating into a payout of Rs3 per unit for Q4 and annual rate of Rs12.1 per unit for FY 18. Its distribution guidance for FY19 is 12.3%.