KKR launches Highways Infrastructure Trust in India

Mumbai, India–(BUSINESS WIRE)–Global investment firm KKR today announced the launch of Highways Infrastructure Trust (“HIT”), a road infrastructure investment trust (“InvIT”). HIT is KKR’s third InvIT in India, besides Virescent Renewable Energy Trust, India’s first renewable energy InvIT, and India Grid Trust, one of the leading transmission InvITs, and marks the latest development of KKR as it expands its infrastructure investment business in the country. Together, these platforms operate and manage 33 assets valued at over $3.8 billion in 22 states or union territories across India.

HIT’s initial portfolio comprises six road assets with a total length of over 450 kilometers across six states in India. The assets, which include a diverse mix of toll roads and annuities, are located in Gujarat, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu and Telangana. Additionally, HIT is considering a pipeline of acquisition targets, including through its sponsor. The platform has significant growth potential and seeks to invest in high-quality assets, including through targeted acquisitions.

HIT has been assigned a ‘AAA provisional/stable’ rating for its loan facilities by CRISIL, the Indian subsidiary of S&P. The rating reflects the favorable location and geographic diversity of the assets, as well as a strong track record of earnings.

The launch of HIT comes amid growing demand to expand India’s road network, the second largest in the world, as passenger and commercial vehicle traffic continue to increase. Today, India’s road network is responsible for 90% of total passenger traffic and the movement of almost 65% of all goods across the country.1

Hardik Shah, Partner at KKR, said, “The launch of HIT is an important step for KKR’s infrastructure strategy in India as we strengthen our presence in the market. Highways and roads play a vital role in India’s economic prosperity and connecting its citizens, and we look forward to enabling the creation and expansion of infrastructure as transport demand continues to grow. With our dedicated platforms across transmissions, roads and renewables in place, KKR is well positioned to engage with sellers in private markets and government through the national monetization pipeline on attractive investment opportunities.

In Asia Pacific, KKR takes a flexible approach to infrastructure investment and combines local knowledge and capabilities with the company’s global industry and operational expertise. Globally, KKR’s infrastructure portfolio covers a wide range of sectors, including transportation, renewable energy, power and utilities, water and wastewater, and telecommunications, among others, and manages over $40 billion in assets.

In India, KKR sees transportation, renewable energy and power transmissions as central to its infrastructure strategy. The launch of HIT further reinforces KKR’s longstanding commitment to India. Since establishing its Mumbai office in 2009, KKR has made over 20 investments in India with more than a dozen active portfolio companies today.

About KKR

KKR is a leading global investment firm providing alternative asset management solutions as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting the growth of its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer pension, life insurance and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For more information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

1 India Brand Equity Foundation (August 2022): Road Industry Report

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