Tower InvIT Data Infra Trust to Raise ₹6,600 Crore from Brookfield, GIC, and British Columbia for ATC Acquisition

Data Infrastructure Trust, a prominent infrastructure investment trust (InvIT) focused on telecom, is set to raise up to ₹6,666 crore from its sponsors—Brookfield, Singapore’s GIC, and the Canadian pension fund British Columbia Investment. This substantial capital will fund the acquisition of American Tower Corporation’s (ATC) telecom assets in India.

Acquisition Details

On January 4, Data Infrastructure Trust announced its intention to acquire ATC’s Indian telecom portfolio, which includes 78,000 towers, for an enterprise value of ₹16,500 crore. This deal is expected to close by next month.

Brookfield’s Expanding Telecom Footprint

This acquisition will mark Brookfield’s third venture into the Indian telecom sector. In 2022, Brookfield acquired a portfolio of 5,000 indoor business solution sites and small cell sites. Additionally, Brookfield owns approximately 175,000 towers, acquired in 2020 from Reliance Industrial Investments and Holdings Limited.

Fundraising Strategy

The board of Data Infrastructure Trust has sanctioned a plan to raise funds through a private placement of 444.4 million InvIT units at ₹150 per unit. The investment breakdown is as follows:

• Brookfield: ₹4,125 crore
• GIC: ₹1,674 crore
• British Columbia Investment: ₹867 crore

Apart from equity funding, Data Infrastructure Trust has secured debt funding of ₹7,900 crore through non-convertible debentures (NCDs) from international investors. Additionally, the trust plans to raise ₹5,600 crore from domestic sources, including ₹1,850 crore in NCDs and up to ₹3,750 crore in term loans.

Market Impact

Once the acquisition is completed, Data Infrastructure Trust’s portfolio will expand to 252,000 towers, positioning it as the leading player in the Indian telecom tower market. Currently, Indus Towers Limited holds the top spot with a portfolio of 225,910 towers as of June 30.