Vertis Infrastructure Trust raises Rs 900 crore via SLB

Vertis Infrastructure Trust, a SEBI-registered infrastructure investment trust (InvIT) has raised Rs 900 crore through a sustainability-linked bond (SLB), marking the largest SLB issuance by an Indian InvIT to date.

The proceeds will be used to support the recently awarded TOT-16, a 252-km NH-44 highway corridor in Telangana aimed at enhancing regional connectivity.

International Finance Corporation (IFC) has emerged as the anchor investor in the Vertis Infrastructure Trust, which was formerly known as Highways Infrastructure Trust.

Earlier this year, Cube Highways Trust (Cube InvIT) secured an investment of Rs 860 crore from the International Finance Corporation (IFC) via an SLB.

With IFC as an anchor investor in the above two InvITs, it is expected that there will be enhanced foreign and domestic participation going forward in India’s sustainable infrastructure and thematic bonds space.

This SLB, with a 10-year fixed rate, is priced at 7.40%.

A sustainability-linked bond (SLB) is a fixed income instrument (bond) where its financial or structural characteristics are tied to predefined sustainability or environmental, social and governance (ESG) objectives.