Singapore’s sovereign wealth fund GIC will invest up to Rs 4,400 crore in the road assets of IRB Infrastructure Developers, according to a company statement. As part of the transaction, IRB will transfer 9 of its BOT (build, operate and transfer) assets into a private infrastructure investment trust in which IRB will hold controlling stake of 51 per cent, IRB said on Tuesday.
The deal was approved by the board following which IRB has signed binding definitive agreements with GIC for a total investment of up to Rs 4,400 crore, including funding of future construction costs. “IRB Infrastructure Developers today announced investment by affiliates of GIC, Singapore’s sovereign wealth fund, in its road platform...The portfolio spans across 1,200 km in Haryana, Uttar Pradesh, Rajasthan and Gujarat, Maharashtra and Karnataka,” IRB said in a statement.
Three of these projects have recently become operational and another six are under various stages of construction. Five of the assets under construction are projects for widening of highways into four and six lanes where tolling as well as construction have already begun, the company said. These projects are strategically located along economic corridors and across tourist hubs, it said.
“The proposed investment is subject to regulatory approvals, lender consents and other applicable approvals. The investment proceeds from GIC will be used for deleveraging of the portfolio, and equity funding for under construction projects of the portfolio,” the company said.