Infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) are providing a fillip to India's infrastructure growth story.
After being popular at the global level for a few decades now, the penetration of these instruments has increased in India despite a relatively small vintage on account of proactive regulations.
Their assets under management in the domestic market increased about fourfold from the fiscal 2019 level to nearly Rs 2.5 lakh crore in fiscal 2022.
InvITs and REITs have the benefit of their underlying assets providing long-term cash-flow visibility, diversification benefits, and effective management of risks for all stakeholders, including sponsors, investors and lenders.
The National Monetisation Pipeline estimates aggregate monetisation potential of Rs 6 lakh crore through core assets of the central government, over four fiscals through 2025. InvITs and REITs have been identified as important channels in this ambitious plan.
CRISIL Ratings believes these hybrid instruments (between debt and equity) have healthy potential to support financing needs for infrastructure build-out over the medium to long term.
In the milieu, CRISIL Ratings is hosting a webinar where its experts will discuss the nuances of InvITs and REITs, such as:
Growth across asset classes
Evolution of regulatory aspects
Key credit aspects of various asset classes
Funding potential
Challenges and the way forward
This will be followed by a panel discussion with industry leaders, and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
