Canada’s Caisse de dépôt et placement du Québec (CDPQ) is buying a toll road in India from local developer Bharat Road Network and other shareholders for an unspecified sum, the pension fund’s first transportation infrastructure investment in the major Asian emerging market.
The acquisition of the Shree Jagannath Expressway is being made through CDPQ’s infrastructure investment fund, India Highway Concession Trust, the pension fund and Bharat Road Network say in a joint statement on January 22.
The Indian company is the biggest shareholder in the toll road, with a 40% stake. The identity of the other shareholders was not disclosed.
Canadian institutional fund manager Caisse de dépôt et placement du Québec (CDPQ) through its infrastructure investment trust India Highway Concession Trust has signed an agreement with Bharat Road Network Limited to acquire a 67-kilometre toll road project from Bhubaneswar to Chandikhole, in Odisha.
The enterprise value of the SPV Shree Jagannath Expressway Private Limited is estimated in the range of Rs 1800-2000 crore, people familiar with the development said. The SPV is in charge of the development, operations and maintenance of the project which began in December 2011 with an initial concession period of 26 years.
BRNL is the largest shareholder with a 40 per cent stake. The company is looking to reduce debt and to use the proceeds for organic and inorganic growth. BRNL’s borrowings were at Rs 260 crore as in September 2020.
Bharat Road Network Inks Deal For Sale Of Road Project In Odisha moneycontrol.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneycontrol.com Daily Mail and Mail on Sunday newspapers.
BRNL sells expressway in Odisha to CDPQ-owned India Highway Concession Trust ANI | Updated: Jan 21, 2021 12:07 IST
Kolkata (West Bengal) [India], January 21 (ANI): Bharat Road Network Ltd (BRNL) and its partners have signed an agreement with India Highway Concession Trust an infrastructure investment trust set up by global institutional investor Caisse de depot et placement du Quebec (CDPQ) for the sale of a build-operate-transfer road project in Odisha.
BRNL is currently the largest shareholder with a 40 per cent stake in this project.
The share purchase agreement provides for a complete transfer of ownership of Shree Jagannath Expressway, the special purpose vehicle (SPV) engaged in development, operation and maintenance of a 67-km toll road project from Bhubaneswar to Chandikhole in Odisha.