INDINFRAVIT TRUST (Registered in the Republic of India As An
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Private & Confidential For Private Circulation only INDINFRAVIT TRUST (Registered in the Republic of India as an irrevocable private trust under the Indian Trusts Act, 1882, on March 7, 2018, and as an infrastructure investment trust under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, on March 15, 2018, having registration number IN/InvIT/17-18/0007 at Mumbai) Principal Place of Business: SKCL Tech Square, 5th Floor, Lazer St, South Phase, SIDCO Industrial Estate, Guindy, Chennai 600 032 Tel: +91 44 43986000 Compliance Officer: Rekha NB; E-mail: [email protected]; Website: www.indinfravit.com PRIVATE & CONFIDENTIAL THIS INFORMATION MEMORANDUM DATED MAY 21, 2021 IS PREPARED PURSUANT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE AND LISTING OF DEBT SECURITIES) REGULATIONS, 2008 ISSUED VIDE NOTIFICATION No. LAD- NRO/GN/2008/13/127878 DATED JUNE 06, 2008 AS AMENDED FROM TIME TO TIME AND IS IN COMPLIANCE WITH THE OPERATIONAL GUIDELINES. INFORMATION MEMORANDUM INFROMATION MEMORANDUM (“INFORMATION MEMORANDUM”) FOR ISSUE BY WAY OF PRIVATE PLACEMENT (“ISSUE”) OF UPTO 8,500 SECURED, LISTED, RATED, REDEEMABLE, NON-CONVERTIBLE DEBT SECURITIES (“DEBT SECURITIES”) IN ONE SERIES (“SERIES ISSUE”) OF A FACE VALUE OF INR 10,00,000 (RUPEES TEN LAKHS) EACH WITH AN ISSUE SIZE OF UPTO INR 850 CRORE (RUPEES EIGHT HUNDRED AND FIFTY CRORE) (“ISSUE SIZE”) (“ISSUE”) BY INDINFRAVIT TRUST (THE “ISSUER”), REPRESENTED BY LTIDPL INDVIT SERVICES LIMITED. THIS ISSUANCE WOULD BE UNDER THE ELECTRONIC BOOK MECHANISM FOR ISSUANCE OF DEBT SECURITIES ON A PRIVATE PLACEMENT BASIS AS PER THE SECURITIES AND EXCHANGE BOARD OF INDIA (“SEBI”) CIRCULAR SEBI/HO/DDHS/CIR/P/2018/05 DATED JANUARY 5, 2018, AND ANY AMENDMENTS THERETO (“SEBI EBP CIRCULAR”) READ WITH “OPERATING GUIDELINES FOR BSE ELECTRONIC BIDDING PLATFORM” ISSUED BY THE BSE LIMITED (“BSE EBP GUIDELINES”). (THE SEBI EBP CIRCULAR AND THE BSE EBP GUIDELINES ARE HEREINAFTER COLLECTIVELY REFERRED TO AS THE “OPERATIONAL GUIDELINES”). THE ISSUER INTENDS TO USE THE BSE - BOND EBP PLATFORM FOR THIS ISSUE. GENERAL RISK Investments in debt securities and debt related securities involves a degree of risk and investors should not invest any funds in the debt instrument, unless they understand the terms and conditions of the Issue and can afford to take risks attached to such investments. For taking an investment decision, investors must rely on their own examination of the Issuer and the offer including the risks involved. Investors are advised to read the section on “Risk Factors” carefully before taking an investment decision on this offer. The Debt Securities have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”) nor does SEBI guarantee the accuracy or adequacy of the contents of this Information Memorandum. Eligible Investors are advised to take an informed decision and consult their tax, legal, financial and other advisers, regarding the suitability of the Debt Securities in the light of their particular financial circumstances, investment objectives and risk profile. CREDIT RATING The Debt Securities have been rated “AAA” with ‘stable’ outlook by ICRA and CRISIL for an amount up to INR 850 crores vide their letter dated May 14, 2021 and May 13, 2021, respectively. Instruments with this rating are considered to have the highest degree of safety regarding timely Private & Confidential For Private Circulation only servicing of financial obligations. Such instruments carry lowest credit risk. The above rating is not a recommendation to buy, sell or hold securities and investors should take their own decisions. The rating may be subject to revision or withdrawal at any time by the assigning rating agency and the rating should be evaluated independently of any other rating. The rating agency has the right to suspend, withdraw the rating at any time on the basis of new information etc. Please refer to Annexure C of this Information Memorandum for rating letter and rationale for the above rating. WILFUL DEFAULTER The Issuer, the Investment Manager, the Sponsor and each of its directors and promoters have not been declared as willful defaulters by any bank or financial institution or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the RBI. LISTING The Debt Securities are proposed to be listed on the wholesale debt market (“WDM”) segment of the BSE Limited (“Stock Exchange”). The Issuer shall comply with the requirements of the SEBI LODR Regulations and SEBI (ILDS) Regulations to the extent applicable to it on a continuous basis. The Stock Exchange has given its in-principal listing approval for the Debt Securities proposed to be offered through this Information Memorandum vide their letter dated May 21, 2021. Please refer to Annexure J to this Information Memorandum for the ‘in-principle’ listing approval from the Stock Exchange. Issue Schedule 1. Issue / Bid Opening Date – May 25, 2021 2. Issue / Bid Closing Date – May 25, 2021 3. Pay-in Date – May 27, 2021 4. Deemed Date of Allotment – May 27, 2021 DEBENTURE REGISTRAR TO SOLE ARRANGER TO THE ISSUE TRUSTEE THE ISSUE Axis Trustee Services Link Intime India Limited Pvt. Ltd ICICI Bank Limited Address: The Ruby, Address: 247 Park, C- Address: ICICI Bank Towers, Bandra-Kurla st 2nd Floor, SW 29, 101, 1 Floor, LBS Complex, Bandra (East), Mumbai – 400 051 Senapati Bapat Marg, Marg, Vikhroli (W), Tel: 022-4008 8919 Dadar West, Mumbai, Mumbai – 400 083 400028, Maharashtra, Tel 1: + 91 Fax: 022-4008 1099 India. 9766923470 Contact Person: Mr. Ritesh Tatiya Tel - 022 6230 0451 Tel 2: +91 22 E-mail: [email protected] Fax - 022 6230 0700 49186101 Website: www.icicibank.com E Mail - Fax - 022 6230 0700 Debenturetrustee@axi E Mail - strustee.com amit.dabhade@linkinti Website - me.co.in www.axistrustee.com The Issuer reserves the right to change the issue programme including the Deemed Date of Allotment (as defined hereinafter) at its sole discretion in accordance with the timelines specified in the Operational Guidelines, without giving any reasons or prior notice. The Issue will be open for bidding as per bidding window that would be communicated through BSE BOND-EBP Platform. The issue of Debt Securities shall be subject to the provisions of the SEBI InvIT Regulations, SEBI Debt Regulations, SEBI LODR Regulations, the terms and conditions of this Information Memorandum filed with the Exchange(s), the Debenture Trust Deed and other documents in relation to such Issue. Capitalized terms used here have the meaning ascribed to them in this Information Memorandum. Private & Confidential For Private Circulation only TABLE OF CONTENTS 1. DEFINITIONS AND ABBREVIATIONS 5 2. DISCLAIMERS 12 3. ISSUE OF DEBT SECURITIES IN DEMATERIALISED FORM 17 4. CONSENTS 17 5. FORWARD-LOOKING STATEMENTS 17 6. LIMITS ON DISTRIBUTION 19 7. RISK FACTORS 19 8. BUSINESS 24 9. REGULATORY APPROVALS 17 10. ISSUER INFORMATION Error! Bookmark not defined. 11. ISSUE PROCEDURE 35 12. DATE OF SUBSCRIPTION 42 13. MATERIAL CONTRACTS & DOCUMENTS 47 14. DISCLOSURES PERTAINING TO WILFUL DEFAULT (IF ANY) 47 15. ISSUE DETAILS 48 16. Illustrative cash flow per debenture of rs.10,00,000 each 1 17. DECLARATION 1 ANNEXURE A 5 ANNEXURE B 6 ANNEXURE C 7 ANNEXURE D 13 ANNEXURE E 33 ANNEXURE F 46 ANNEXURE G Major Maintenance as per Base Case Business Plan 2 ANNEXURE H COPY OF THE BOARD RESOLUTION 121 ANNEXURE I COPY OF THE UNITHOLDERS RESOLUTION 122 ANNEXURE J 123 Private & Confidential For Private Circulation only ANNEXURE K 124 ANNEXURE L 125 ANNEXURE M 126 ANNEXURE N 127 ANNEXURE O 5 ANNEXURE P 134 Private & Confidential For Private Circulation only 1. DEFINITIONS AND ABBREVIATIONS In this Information Memorandum, unless the context otherwise requires, the terms defined, and abbreviations expanded below, have the same meaning as stated in this section. References to statutes, rules, regulations, guidelines and policies will be deemed to include all amendments and modifications notified thereto. Any capitalized term not defined herein shall have the meaning given to such term in the Debenture Trust Deed. 1.1. Issuer Related Terms Term Description AJTL Aurangabad Jalna Tollway Limited AJTL Project Four laning of Aurangabad Jalna road (MSH 6) km. 10/400 to 60/200 Beed By Pass km. 292/500 to 305/650 and Zalta By Pass km. 0/00 to 2/850 under build operate and transfer basis. ARRIL / Proposed Ahmedabad Ring Road Infrastructure Limited Project SPV ARRIL Project Four laning of the Sardar Patel Ring Road around the Ahmedabad city in the State of Gujarat on a build, operate and transfer (BOT) basis Authority NHAI or the Governor of Karnataka or the Ahmedabad Urban Development Authority or the Governor of Maharashtra Auditors Sharp & Tannan, Chennai BHTPL Bijapur Hungund Tollway Private Limited BHTPL Project Bijapur-Hungund part of the highway between Km 102 (one hundred and two) to Km 202 (two hundred and two) in the State of Karnataka on a design, build, finance, operate and transfer (DBFOT) basis. BPPTL Beawar Pali Pindwara Tollway Limited BPPTL Project 0.0 Km to 244.12 KM part of the National Highway 14 with a length of 244 KM in the state of Rajasthan on a design, build, finance, operate and transfer (DBFOT) basis. BRTPL Bhilwara Rajsamand Tollway Private Limited BRTPL Project Rajsamand-Bhilwara part of the highway between Km 0.00 (zero) to Km 87.250 (eighty seven point two five zero) in the State of Rajasthan on a design, build, finance, operate and transfer (DBFOT) basis. Concession Concession Agreement executed by KWTPL, KTTRPL, BPPTL, Agreement DHTL, WATPL, AJTL, ARRIL, BHTPL, BRTPL, DPTL, HYTPL, MBHPL, NSEL and SUTPL with the respective Authorities. Provided however that, each of these shall be considered to be Concession Agreements for the purposes of the Transaction Documents, only upon acquisition by the Issuer of the entire share capital of each of the relevant companies.