IFC considers investing in I Squared's Indian road vehicle

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
IFC considers investing in I Squared's Indian road vehicle

The International Finance Corporation (IFC i)s considering an equity investment in a holding company, Road Holdco, developed by I Squared Asia Advisors Pte. Ltd. (ISQ), which will primarily acquire operating road assets in India.

The company may also acquire other transportation and logistics assets like parking facilities, logistics infrastructure, and other such assets. ISQ is currently in advanced stages of evaluating multiple operational toll roads to be acquired by the Road Holdco.

IFC is considering an equity investment in the Road Holdco of up to US$90 million. IFC will also consider providing refinancing for the debt of the roads that the Road Holdco will acquire. IFC's total debt investment is expected to be up to US$150 million.

The new road vehicle aims to support the critical roads infrastructure of the country, which is a priority for the Government of India. In order to achieve this objective IFC launched in mid august a $2.5 billion rupee financing program to strengthen capital markets and support infrastructure development.

The Indian road sector is in trouble, the proof is that twenty-one road PPP projects bid out by the National Highways Authority of India (NHAI) did not get a single bidder during the fiscal year 2013-2014. The Ministry of Road Transport & Highways and the NHAI have taken a number of steps for speedy completion of National Highway (NH) projects.

In addition the Reserve Bank of India (RBI) has advised all commercial banks to treat road sector debt as secured to enable banks to allocate a larger portion of lending to road sector and also to reduce the cost thereon. Concessionaires/developers have also been allowed for harmonious substitution and the re-schedulement of Premium quoted by them.

During the year 2013-14, NHAI had awarded 17 projects for a total length of 1435.84 kms of which two projects are on PPP mode.

List of country news

Country news

  • October 10, 2014

    IDFC closes its second infrastructure fund at $900 million

    IDFC Alternatives Limited, one of India's largest multi-asset class fund managers announces the final closing for India Infrastructure Fund II (IIF II) at its hard cap of INR 5,500 crore (approx. USD 900 million). Read more
  • October 10, 2014

    Goa launches tender for MOPA airport PPP

    The Government of Goa, India, through the directorate of civil aviation, has issued a request for qualification (RFQ) for the Mopa international airport PPP project. Read more
  • October 13, 2014

    India to support China's Asian Infrastructure Investment Bank

    India could support the Asian Infrastructure Investment Bank proposed by China as part of the new government's new policy to deepen regional cooperation. Read more
  • October 23, 2014

    Madhya Pradesh tenders $280m road PPP project

    The project involves the development of a four laning with paved shoulder road. The project will be developed on build - operate - transfer, BOT (Toll) basis. Read more
  • October 27, 2014

    MOU signed for creation of Asian Infrastructure Investment Bank

    Last Friday, twenty-one Asian countries signed a Memorandum of Understanding (MOU) to establish the Asian Infrastructure Investment Bank (AIIB) as founding members in Beijing. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.