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 Limited (BRNL) has signed an agreement with India Highway Concession Trust, an infrastructure investment trust set up by Caisse de dépôt et placement du Québec (CDPQ), a global investor, for the sale of a BOT (build-operate-transfer) road project in the state of Odisha. BRNL is the largest shareholder, with a 40 per cent stake in the project. The share purchase agreement provides for the complete transfer of ownership of Shree Jagannath Expressway Private Limited, the special purpose vehicle (SPV) for developing a 67-kilometre toll road project from Bhubaneswar to Chandikhole, in Odisha. Project operations started in December 2011, with an initial concession period of 26 years.
Canadian fund manager buys BRNL highway project in Odisha for Rs 2,000 crore
The BRNL highway project taken over by CDPQ is a 67 kilometre toll road project from Bhubaneswar to Chandikhole in Odisha. Sources close to the development told BusinessToday.In that the deal is valued between Rs 1,800 crore and Rs 2,000 crore
Ashutosh Kumar | January 21, 2021 | Updated 16:54 IST
Bhubaneswar to Chandikhole toll project started in December 2011 with a concession period of 26 years
Canadian institutional fund manager, Caisse de depot et placement du Quebec (CDPQ), has bought a highway project in Odisha from highway developer Bharat Road Network Limited (BRNL) in a deal valued at about Rs 2,000 crore.