2 January 2026·PIB

NHAI’s Raajmarg Infra Investment Trust Receives AAA Rating from CARE Ratings

In this note

1. At a Glance

Raajmarg Infra Investment Trust (RIIT) is the NHAI-sponsored Public Infrastructure Investment Trust (InvIT) created to monetise operational National Highway assets [1][2].
On 2 January 2026, RIIT secured a CARE AAA (Stable) rating for its long-term bank facilities — the highest creditworthiness tier [1].
Relevance: tests Asset Monetisation Pipeline (NMP), InvIT structure under SEBI Regulations 2014, and infrastructure financing — all recurring GS-III economy themes.

02 Jan 2026: CARE Ratings assigns AAA (Stable) rating to RIIT's long-term bank facilities [1].
Follows SEBI registration of RIIT as a Public InvIT and the ₹9,500 crore asset monetisation offer accepted by NHAI for 5 highway stretches (~260 km) [2].
RIIT's maiden public issue scheduled to list on BSE on 24 March 2026, oversubscribed ~14× [2].

2014: SEBI notifies InvIT Regulations, 2014 enabling pooled infrastructure investment vehicles.
2020: First NHAI InvIT (private, institutional) launched to monetise NH assets under the National Monetisation Pipeline (NMP) of NITI Aayog [2].
2025: NHAI incorporates Raajmarg Infra Investment Managers Pvt. Ltd. (RIIMPL) as Investment Manager, with equity from SBI, PNB, NaBFID, Axis, HDFC, ICICI, IDBI, IndusInd, Yes Bank, Bajaj Finserv Ventures [2].
2025–26: SEBI in-principle and final registration of RIIT as a Public InvIT [2].
2 Jan 2026: CARE AAA (Stable) rating [1].

Sponsor: National Highways Authority of India (NHAI), under Ministry of Road Transport & Highways (MoRTH) [1].
Statutory base — NHAI: National Highways Authority of India Act, 1988.
Regulatory base — InvIT: SEBI (Infrastructure Investment Trusts) Regulations, 2014.
Investment Manager: Raajmarg Infra Investment Managers Pvt. Ltd. (RIIMPL) [2].
Rating Agency: CARE Ratings Ltd.; Rating: AAA (Stable), long-term bank facilities [1].
Asset bid value: ₹9,500 crore for 5 NH stretches, ~260 km, across 4 states [2]:
Gorhar–Barwa Adda (80.52 km, Jharkhand)
Chilakaluripet–Vijayawada (69.4 km, Andhra Pradesh)
Chennai Bypass (32.6 km, Tamil Nadu)
Chennai–Tada (33 km, Tamil Nadu)
Neelmangla–Tumkur (44.6 km, Karnataka)
Listing venue: BSE; listing date: 24 March 2026; IPO oversubscription: ~14× [2].

Economic

AAA rating lowers cost of borrowing for RIIT, improving NHAI's recycling economics under NMP (₹6 lakh cr, FY22–25) [1].
Public InvIT widens retail participation in infra debt — diversifies away from bank-dominated infra finance.
Crystallises upfront ₹9,500 cr to NHAI for redeployment into greenfield highways [2].

Administrative / Governance

Shifts NHAI from owner-operator to asset originator + monetiser, separating concession and capital-raising functions [2].
RIIMPL's bank-consortium ownership provides arm's-length governance between sponsor (NHAI) and trust [2].

Legal / Regulatory

RIIT operates under SEBI InvIT Regulations 2014: minimum 80% in completed revenue-generating assets, mandatory 90% NDCF distribution.
AAA rating signals compliance with SEBI's leverage caps and DSCR norms.

Strategic (Infrastructure)

Demonstrates a replicable template for monetising operational TOT (Toll-Operate-Transfer) bundles via public markets, beyond the earlier private NHAI InvIT.

RIIT is sponsored by NHAI, under Ministry of Road Transport & Highways [1].
Rating: AAA (Stable) by CARE Ratings on 2 Jan 2026 for long-term bank facilities [1].
Investment Manager: Raajmarg Infra Investment Managers Pvt. Ltd. (RIIMPL) [2].
RIIMPL's equity partners include SBI, PNB, NaBFID, Axis, HDFC, ICICI, IDBI, IndusInd, Yes Bank, Bajaj Finserv Ventures [2].
InvITs are regulated by SEBI under the InvIT Regulations, 2014.
RIIT bid: ₹9,500 crore for 5 stretches, ~260 km, across 4 states [2].
States covered: Jharkhand, Andhra Pradesh, Tamil Nadu, Karnataka [2].
Longest stretch monetised: Gorhar–Barwa Adda, 80.52 km, Jharkhand [2].
Listing exchange: BSE, on 24 March 2026 [2].
IPO oversubscribed approximately 14 times [2].
RIIT is NHAI's second InvIT and its first Public InvIT [2].
NHAI is statutorily constituted under the NHAI Act, 1988.

GS-III: Indian Economy — Mobilisation of Resources; Infrastructure; Investment Models.
Possible stems: 1. "Public InvITs are emerging as a credible vehicle for monetising operational infrastructure assets. Discuss with reference to NHAI's Raajmarg InvIT." 2. "Examine how asset monetisation can supplement, not substitute, budgetary capital expenditure on highways." 3. "AAA-rated infrastructure debt instruments can deepen India's bond market. Critically evaluate."

National Monetisation Pipeline (NMP), NITI Aayog — parent framework for RIIT.
Toll-Operate-Transfer (TOT) model — alternate monetisation route used by NHAI.
Bharatmala Pariyojana — supply-side capex programme financed by such recycling.
SEBI InvIT/REIT Regulations, 2014 — regulatory architecture.
NaBFID (2021) — sister institution for infra debt; also RIIMPL shareholder.
PowerGrid InvIT / IRB InvIT — comparative public InvITs.
Credit Rating Framework (SEBI) — relevance of CARE, CRISIL, ICRA.
National Highways Authority of India Act, 1988 — sponsor's statutory base.

Confusing InvIT with REIT — InvITs hold infrastructure assets; REITs hold real estate.
Assuming RIIT is NHAI's first InvIT — it is the first Public InvIT; a private InvIT existed since 2020.
Wrong ministry — MoRTH, not Ministry of Finance or NITI Aayog (NITI only frames NMP).
Wrong regulator — SEBI, not RBI or IRDAI.
Mixing up the rating agency — CARE, not CRISIL/ICRA; rating is on bank facilities, not units.