KKR Launches Highways Infrastructure Trust in India with Six Assets

• KKR has launched HIT, its third investment infrastructure investment fund, in India.
• HIT’s initial portfolio includes six road networks with a total length of more than 450 kilometers in six states in India.
• The platform aims to invest in and also acquire highway assets.

Global Investment Company Kohlberg Kravis Roberts (KKR) launched a third infrastructure investment trust in India, dedicated to the road sector.

called the Road Infrastructure Trust (HIT), this will be an addition to KKR’s infrastructure trust portfolio which consists of: Virescent Renewable Energy Trust and India Grid Trust.

“The launch of HIT is an important milestone for KKR’s infrastructure strategy in India as we deepen our presence in the market. Highways and roads play a vital role in boosting India’s economic prosperity and connecting its citizens, and we look forward to enabling further infrastructure creation and expansion as transport demand continues to grow,” said Hardik Shahpartner at KKR.

HIT’s initial portfolio includes six road networks with a total length of more than 450 kilometers in six states in India. Its 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 has significant growth potential and aims to invest in high-value assets, including through bolt-on acquisitions,” the company said in a statement.

CRISIL, an Indian affiliate of S&P, has allocated HIT ‘provisional AAA/stable’ for its loan facilities.

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

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

“With our dedicated platforms for transmissions, roads and renewables, KKR is well positioned to partner with vendors in the private and government markets through the National Monetization Pipeline on attractive investment opportunities,” added Shah.

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

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