The National Highways Infrastructure Trust (NHIT) is set to raise Rs 15 billion through non-convertible bonds as it looks set to add three highways worth Rs 38 billion to its portfolio.

According to a filing by the trust with the Securities and Exchange Board of India (SEBI), the trust will issue 15 million bonds of three separate denominations.

NHIT is the Infrastructure Investment Trust (InvIT) of the National Highways Authority of India (NHAI). Last week, the InvIT raised external capital of Rs 12.17 billion from institutional investors.

Union Minister for Road Transport and Highways Nitin Gadkari had previously alluded to the public listing of the currently private InvIT. While this plan is being worked out with SEBI, retail investors can invest in the NCDs. Previously, NHIT's debt component consisted only of bank loans.

“We are now going into the capital markets for our Build-Operate-Transfer (BOT) and Hybrid Annuity Mode (HAM) projects and we will assure you a return of 8 percent,” the minister had recently said, adding that he wants to tap on small investors.

NHIT currently owns, operates and maintains a portfolio of 5 initial toll roads with a length of 389 km in Gujarat, Rajasthan, Telangana and Karnataka, and plans to levy, operate and maintain 3 more toll roads with a length of 246 km in Telangana, Maharashtra, Uttar Pradesh and Madhya Pradesh under NHAI's Toll Operate and Transfer model.