Ferrovial purchases 24% stake in India-based infrastructure company
The firm is acquiring the stake from affiliates of GIC, which currently own a 49% stake of IRB Infrastructure Trust
Infrastructure specialist Ferrovial, through its toll-road subsidiary Cintra, has invested US $802.3mn for a 24% stake in IRB Infrastructure Trust in India.
IRB is an investment vehicle that integrates road concessions and construction and has a portfolio of 12 toll road concessions in India, with a pipeline of three more to come. Since it was founded in 1998, it has built more than 18,500 lane kilometers of roads in India.
According to a report, Ferrovial is acquiring the stake from affiliates of GIC, which currently own a 49% stake of IRB Infrastructure Trust. After the transaction is closed, GIC’s affiliates will retain a 25% stake in IRB Infrastructure Trust and IRB Infrastructure Developers will maintain its current 51% stake. The total investment amount includes $105.2mn to fund outstanding equity commitments in projects being developed by IRB Infrastructure Trust.
“India’s infrastructure development plans have expanded substantially in recent years with planned capital expenditures of $260.2bn in roads and highways between the years 2020-2025, according to the Indian Department of Economic Affairs report on National Infrastructure Pipeline,” Ferrovial noted.
“In this context, IRB Infrastructure Trust is one of the leading platforms in the country with the ability to leverage synergies between a large Build-Operate-Transfer (BOT) developer, a leading financial investor, and a global strategic partner to optimise project planning and selection processes and maximize value creation,” the company concluded.
