KKR launches Highways Infrastructure Trust in India with six assets

• KKR has launched HIT, which is its third investment infrastructure investment trust, in India.
• HIT’s initial portfolio comprises six road assets with a total length of more than 450 kilometers across six states in India.
• The platform seeks to invest in and also acquire highway assets.

Global investment company Kohlberg Kravis Roberts (KKR) launched a third infrastructure investment trust in India, which is dedicated to the roads sector.

Called the Highways Infrastructure Trust (HIT), this will add to KKR’s infra trust portfolio that comprises Virescent Renewable Energy Trust and India Grid Trust.

“HIT’s launch is a significant milestone for KKR’s India infrastructure strategy as we deepen our presence in the market. 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,” said Hardik Shah, partner at KKR.

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.

“HIT is considering a pipeline of acquisition targets, including through its sponsor. The platform possesses significant growth potential and seeks to invest in high-quality assets, including through bolt-on acquisitions,” the company said in a statement.

CRISIL, an S&P’s India affiliate, assigned ‘provisional AAA/stable’ to HIT for its loan facilities.

KKR said that HIT was launched due to the growing demand to expand India’s road network, which is said to be second-largest globally, as passenger traffic and commercial vehicle traffic continue to increase.

India’s road network is responsible for 90% of total passenger traffic and the movement of almost 65% of all goods across the country.

“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,” Shah added.

All the three infra platforms – operate and manage 33 assets valued at over $3.8 billion across 22 states or union territories across India. KKR has over 20 investments in India with more than a dozen active portfolio companies today.

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