Affiliates of GIC, Singapore’s sovereign wealth fund will invest in IRB Infrastructure Developers’ road platform. As part of the transaction, the IRB will transfer 9 of its BOT assets into a private Infrastructure Investment Trust in which the company will hold controlling stake of 51%.
The Portfolio spans across c.1,200 kms in 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.
The deal was approved by the board of directors of the company, following which the company 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 undertakes development of various infrastructure projects in the road sector through several special purpose vehicles.