The Macquarie SBI Infrastructure Fund (MSIF) has announced the completion of an investment into Ashoka Concessions Limited (ACL) for $US150 million1 (INR8 billion), along with a co-investor, the SBI Macquarie Infrastructure Trust (SMIT).
The seven toll roads portfolio held in ACL, the subsidiary of Ashoka Buildcon Limited (‘ABL’), is approximately 630 kilometres (3,018 lane kilometres) and represents a balanced mix of operating and under construction toll roads. Of the seven roads, six are part of the national highway network and one is a state road.
The investment will be used to develop the under construction road projects in ACL. MSIF is a $US910 million private equity fund focused on investing in infrastructure projects in India, and is managed by Macquarie SBI Infrastructure Management Pte. Limited (“MSIMPL”) in Singapore.
SMIT, MSIF’s co-investor, is a $US260 million2 (INR 11.9 billion) private equity fund focused on investing in infrastructure projects inIndia, and is managed by SBI Macquarie Infrastructure Management Private Limited (‘SMIMPL’) in Mumbai, India.
Suresh Goyal, Chief Executive Officer of SBI Macquarie Infrastructure Management, the adviser to MSIF’s manager said, “This transaction, the sixth MSIF has completed to date, continues the successful execution of MSIF’s investment strategy. MSIF invests in high quality assets in partnership with leading domestic companies that provide attractive risk adjusted returns on a portfolio basis.”
ABL is one of India’s leading road development companies and currently owns and operates 20 road projects on a Public Private Partnership (PPP) basis. ABL has a strong track record in the execution of various road projects and with an established management team, is well positioned to participate in the growth of India’s road network in the coming years.
Upon completion of this investment, MSIF’s portfolio will comprise six investments with total capital invested of approximately $US640 million3, including investments in telecom towers, airports, power generation and renewable energy. Including coinvestors, MSIF will have led the deployment of approximately $US840 million into infrastructure projects in India over three years.
MSIF’s acquisition of its interest in ACL is subject to customary closing conditions.
