Roads are one of India’s largest and most crucial infrastructure assets
KKR, a global investment firm, has signed definitive agreements to acquire New York-headquartered Global Infrastructure Partners’ (GIP) entire interest in Highway Concessions One (HC1) and seven highway assets with a total length of 487-km across Gujarat, Karnataka, Madhya Pradesh, Meghalaya, Rajasthan, Tamil Nadu and Telangana.
Through the acquisition of GIP’s interest in HC1, KKR aims to help strengthen and expand India’s national highway network, which serves about 40% of total traffic but accounts for only 2% of the country’s road network. This latest infrastructure investment is also in line with the government’s focus on improving connectivity between cities. The National Highways Authority of India is planning to build 60,000 km of highway in the next five years.
KKR Managing Director and Head of India Infrastructure Hardik Shah said, “Roads are one of the largest and most crucial infrastructure assets in India, where the world’s second-largest road network is located. Rapidly increasing passenger and commercial vehicle traffic has driven the strong demand to expand the country’s road network even further and the reciprocal need for investment in the sector.
“This is why the transportation sector is a key area of our infrastructure strategy in India. We are truly excited to invest in a high-quality platform and through HC1 play a part in India’s transport infrastructure,” Shah said in a release on 5 July 2021 from Mumbai.
KKR made its investment from the KKR Asia Pacific Infrastructure Fund. The investment represents KKR’s third investment in India from the Fund and the firm’s first investment in Asia’s transport sector. Recent infrastructure investments in India include India Grid Trust (IndiGrid), a leading infrastructure investment trust in India, and Virescent Infrastructure, a renewable energy company in India.
Details of the transaction were not disclosed.
EY and Deloitte acted as KKR’s advisors while AZB & Partners and Simpson Thacher & Bartlett acted as legal advisors to KKR.
HC1 is a platform operating seven road assets in India, in which KKR is acquiring the GIP’s stake.
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. #investment #projects #infrastructure #banking /fiinews.com
