Bharat Road Network indicators take care of CDPQ for the sale of a 67-kilometre highway mission in Odisha, India
2 min read Kolkata: Bharat Road Network Limited (“BRNL”), one in all India’s main highway builders, together with its companions, has signed an settlement with India Highway Concession Trust, an infrastructure funding belief arrange by Caisse de dépôt et placement du Québec (CDPQ), a world institutional investor, for the sale of a BOT highway mission within the state of Odisha. BRNL is at present the most important shareholder, with a 40% stake on this mission.
The Share Purchase Agreement offers for the whole switch of possession of Shree Jagannath Expressway Private Limited, the particular goal car (SPV) engaged within the improvement, operation and upkeep of a 67-kilometre toll highway mission from Bhubaneswar to Chandikhole, in Odisha. Project operations began in December 2011, with an preliminary concession interval of 26 years.
Speaking on the event, Bajrang Kumar Choudhary, Managing Director, BRNL stated: “The transaction is in line with BRNL’s strategic plan for stakeholder value creation through portfolio assets reallocation while focusing on enhancing operational excellence and increasing financial efficiencies in existing assets. The transaction is expected to help BRNL in reducing its debts and will also provide the company with funds for reinvesting in its existing assets under construction.”
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure, CDPQ, stated: “We are thrilled with the acquisition of Shree Jagannath Expressway. It will be the first asset integrated into the new CDPQ-owned roads platform in India, which we set up and staffed in 2020. This reflects our long-term confidence and interest for the sector and more broadly the Indian infrastructure market.”
The transaction is topic to regulatory approvals and different closing circumstances.
With a marked restoration in industrial visitors on Indian highways to pre-pandemic ranges, the deal indicators the renewed concentrate on M&A actions within the roads sector.
About Bharat Road Network Limited (“BRNL”)
Bharat Road Network Limited (“BRNL”) is a highway BOT firm in India, targeted on improvement, implementation, operation and upkeep of roads and highways initiatives. BRNL is concerned within the improvement, operation and upkeep of nationwide and state highways in a number of states in India with initiatives in states of Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha. BRNL has a mission portfolio price Rs 6800 crores consisting of six (6) operational BOT initiatives, masking 2,095 lane kilometres throughout six states in India.
About CDPQ
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance policy. As at June 30, 2020, it held CAD 333.0 billion in web property. As one in all Canada’s main institutional fund managers, CDPQ invests globally in monetary markets, personal fairness, infrastructure, actual property and personal debt. For extra data, go to cdpq.com, comply with us on Twitter @LaCDPQ or seek the advice of our Facebook or LinkedIn pages.
