ARTICLE
13 August 2019

GIC Announces Investment Of ~USD 625mn In The Road Business Of IRB

ND
Nishith Desai Associates

Contributor

Nishith Desai Associates logo
With offices in Asia-Pacific, Europe and the United States Nishith Desai Associates is the go-to firm for corporates looking to conduct business in India as well as for Indian companies looking to set up operations abroad; navigate the complex business regulations and grow.
GIC and IRB have signed investment agreements for investment up to INR 4,400 crore (approx.. USD 624.11 million) to set-up India's largest private infrastructure investment trust to which IRB
India Real Estate and Construction

DEAL BRIEF

GIC and IRB have signed investment agreements for investment up to INR 4,400 crore (approx.. USD 624.11 million) to set-up India's largest private infrastructure investment trust to which IRB will transfer 9 BOT road assets. The private InvIT is estimated to have a portfolio of INR 22,500 crores (approx. USD 3,191.48 million) at completion of construction. The road assets in the portfolio span across Haryana, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra and Karnataka. Three of these projects have recently become operational and balance six are under various stages of construction. Five of the assets under construction are 4 to 6 laning projects, where tolling as well as construction has already begun. These projects are strategically located along economic corridors and across tourist hubs.

IRB will hold 51% and GIC will hold 49% in the Investment Manager (IM) entity formed to manage the private InvIT. The balance construction and O&M for the road assets in the portfolio will be executed by IRB as the project manager for the private InvIT.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More