IRB Infrastructure Gets NOC From NHAI For Transfer Of Nine BOT Assets
A cement truck sits parked at a road construction site in Bhopal District, Madhya Pradesh, India. (Photographer: Anindito Mukherjee/Bloomberg)  

IRB Infrastructure Gets NOC From NHAI For Transfer Of Nine BOT Assets

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IRB Infrastructure Developers Ltd. has received a no objection certificate from National Highways Authority of India for transfer of nine build-operate-transfer assets to IRB Infrastructure Trust and subsequent investment by GIC Pte Ltd.'s affiliates for 49 percent stake in the trust.

In a filing to the Bombay Stock Exchange, the company said it has "received NOC from NHAI for transfer of nine of IRB Infrastructure Developers BOT assets to IRB Infrastructure Trust."

"SEBI (Securities and Exchange Board of India) has already granted the Certificate of Registration...to the trust to which the company is a Sponsor, to carry out the activities as an Infrastructure Investment Trust , subject to the conditions specified in the SEBI Act, 1992 and the Regulations made thereunder. Further, 98 percent of our lenders have approved their NOCs supporting the deal and we expect to close the balance shortly," it said.

In August 2019, the company had announced signing definitive agreements with GIC affiliates, for an investment up to Rs 4,400 crore—amounting to 49 percent stake in a portfolio of nine of its assets through Private InvIT structure (viz. IRB Infrastructure Trust), while IRB retains controlling stake of 51 percent in the Trust.

The portfolio spans across l,200 km in Haryana, Uttar Pradesh, Rajasthan and Gujarat, Maharashtra and Karnataka.

Three of these projects are operational and balance six are under various stages of construction.

Five of the assets under construction are four to six laning projects, where tolling as well as construction has already begun. These projects are strategically located along economic corridors and across tourist hubs.

The Investment proceeds from the deal will be used for part deleveraging of the portfolio and equity funding for under construction projects of the portfolio

As the project manager for the Trust, IRB will execute the balance construction and operations and maintenance for the Portfolio.

GIC will also hold 49 percent in the Investment Manager entity to manage the Trust.

This transaction will significantly deleverage the said portfolio, and give IRB material equity support for construction completion, enhancing its project execution capabilities and increasing visibility for its EPC and O&M order book.

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