- Low-Risk Business Model
- Predictable DPU Growth
- Robust Balance sheet
- Best in class corporate governance
Low-Risk Business Model
- A minimum of 80% of the value of a public InvIT should be invested in "finished and revenue-generating infrastructure projects."
- Tariffs are based on the availability of resources that have been pre-contracted.
- Due to the built-in tariff payment security mechanism, there is very little counterparty risk.
- Exposure to under construction or liquid assets cannot exceed 10% of an InvIT's assets.
Predictable DPU Growth
- Every six months, at least 90% of net distributable cash flows must be distributed to unitholders.
- Instead of the prescribed half-yearly distribution, the unitholders will receive a quarterly distribution.
- Long-term contracts with a technical asset life of more than 50 years.
- Optimise cash upstreaming from SPVs to IndiGrid and its unitholders.
Robust Balance sheet
- Leverage cap of 70% on borrowing.
- AAA rated by CRISIL, ICRA, and India Ratings.
- Active and prudent liability management by focusing on long-term loans.
- Maintain an optimal capital structure by raising pre-emptive capital to support future acquisitions.
Best in class corporate governance
- The Investment Manager Board of Directors is made up of 50% independent directors.
- Asset valuation and physical inspection are performed on a quarterly basis.
- Any debt that exceeds 25% of the asset value requires a vote of the unitholders.
- Specified Related Party Transactions involving more than 5% of the asset value require a majority vote.
- In the last ten unitholders meetings, investors approved more than 98 percent of the proposals (except one).