IRB InvIT Fund has received a significant rating update from India Ratings and Research (Ind-Ra), with the rating agency converting the fund's provisional non-convertible debentures (NCDs) rating to a final rating while affirming existing ratings across multiple instruments.

Rating Conversion and Affirmations

India Ratings converted IRB InvIT Fund's provisional NCD rating to a final IND AAA/Stable rating, marking a key milestone in the fund's debt financing structure. The rating agency simultaneously affirmed the existing issuer rating and bank loan facilities at IND AAA/Stable, demonstrating continued confidence in the fund's creditworthiness.

The comprehensive rating action covers multiple financial instruments across different categories:

Documentation and Compliance Requirements

The conversion from provisional to final rating occurred following the receipt of executed transaction documentation that conforms to information previously received by Ind-Ra. This step represents the completion of necessary regulatory and documentation requirements for the rating finalization process.

The rating agency noted that ratings for proposed non-convertible debentures remain contingent upon the execution of certain documents and occurrence of specific procedural steps. This conditional framework ensures that all regulatory and operational requirements are met before final rating assignments.

Regulatory Framework

The rating communication was issued in accordance with SEBI (Infrastructure Investment Trusts) Regulations, 2014, as amended, and SEBI Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2025/102 dated July 11, 2025. This regulatory compliance underscores the fund's adherence to established investment trust guidelines and transparency requirements.

Financial Structure Overview

The rating update encompasses a substantial financial portfolio, with bank loan facilities totaling ₹66,670.00 million representing the largest component. The non-convertible debentures structure includes both existing instruments worth ₹11,500.00 million and proposed debentures totaling ₹12,700.00 million across two tranches.

The AAA rating category with stable outlook reflects the rating agency's assessment of the fund's strong credit profile and financial stability. This rating level typically indicates high credit quality with very low credit risk, providing confidence to investors and lenders regarding the fund's ability to meet its financial obligations.

IRB InvIT Fund has approved the acquisition of VM7 Expressway Private Limited, a wholly-owned subsidiary of its sponsor, IRB Infrastructure Developers Limited. The Board of IRB InvIT Fund has given its approval for the acquisition at an enterprise value of INR 12,170.00 million, subject to regulatory approvals and unitholder consent.

Key Details of the Approved Acquisition

Here are the essential details of the approved acquisition:

Project Highlights

The VM7 Expressway project offers several features:

• Revenue-generating operational asset
• Located in Gujarat
• Turnover of INR 4,117.41 million
• Additional long-term operation and maintenance agreement

Rationale for the Acquisition

The acquisition aligns with IRB InvIT Fund's strategy to acquire revenue-generating assets. Key aspects include:

• Long-term visibility of cash flows through the operational project
• Potential to enhance the overall portfolio of the fund
• Additional revenue stream through the operation and maintenance agreement

Current Status and Way Forward

While the Board has approved the acquisition, the transaction is subject to:

• Regulatory approvals
• Unitholder consent

An Extraordinary General Meeting has been scheduled for December 24, 2025, to seek unitholder approval for the acquisition.

This acquisition represents a step for IRB InvIT Fund in expanding its infrastructure portfolio. The market will be watching the developments as the fund moves forward with this acquisition.