HYDERABAD : Infrastructure investment trust (InvIT) issuances will likely grow fivefold to over `2 lakh crore in the next two years, according to an estimate by CRISIL Ratings. The response to InvITs has been lackluster with just two listed trusts floated till June 2019, with a combined asset value of `20,000 crore. Along with two other unlisted InvITs, total assets under management are just about `40,000 crore.
CRISIL, however, anticipates that the regulatory changes by Securities and Exchange Board of India (SEBI) in April will pave way for new trusts. Sensing the need, SEBI relaxed the leverage norms to 70 per cent from the earlier 49. This is, however, applicable with some riders. Trusts must retain AAA credit rating along with a track record of six continuous distributions to unit holders. The leverage cap isn’t applicable to privately placed, unlisted InvITs.
