India-Singapore InvIT gets Rs4,400cr




Singapore’s sovereign wealth fund GIC and India’s IRB Infrastructure Developers Ltd have signed investment agreements for Rs.4,400 crore (approx. US$624.11 million) to set-up India’s largest private infrastructure investment trust (InvIT), reported Nishith Desai Associates on 9 August 2019.

Under the agreement, IRB will transfer nine toll-based road assets to the trust.

The private InvIT is estimated to have a portfolio of Rs.22,500 crores (approx. US$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 road projects of 4- to 6-lane, 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, said Nishith Desai.

The consultancy acted as the transaction counsel to GIC and advised on legal, structuring and regulatory aspects of the transaction including the negotiations and deal documentation for all the documents.


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