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Abertis has reached an agreement for the acquisition from MSIIPL and SMIT infrastructure funds, controlled by Macquarie and State Bank of India, of two of India's most important toll roads, the NH-44 and the NH-45, for a total amount of €128 million (US$134 million).

The agreement is subject to the completion of certain conditions, including the consent of companies’ lenders.

Abertis will control 100% of the concessionaire Trichy Tollway Private Limited (TTPL), which manages the NH-45, and 74% of Jadcherla Expressway Private Limited (JEPL), which holds the concession for the NH-44. The assets are located in Tamil Nadu and Telangana, both states with economic growth rates above the national average for India and with GDP levels that are amongst the highest in the country.

The NH-45 toll road is in the state of Tamil Nadu in the far south of India. Tamil Nadu has seen its per capita income rise by 8% in the last decade, and it is among the top three most popular tourist destinations in India. 

The 94-kilometre-long NH-45 is a key corridor for the country and connects the industrial areas of Trichy and Madurai with the state capital, Chennai. It has Average Daily Traffic (ADT 2016 estimated) of 17,000 vehicles approximately.

The NH-44 is in the central-southern Indian state of Telangana. The toll road is part of the main north-south traffic corridor and connects the country's two main technology hubs, Hyderabad and Bangalore. 58 kilometres in length, and with ADT (2016 estimated) of 21,000 vehicles approximately, NH-44 runs through a highly industrialized and commercial area where India’s mining sector has a large footprint.   

Francisco Reynés, Vice-Chairman and CEO of Abertis, expressed his satisfaction, stating:

"This deal is an important step for Abertis in the geographic diversification of its business, moving into a growing market and one of the countries with the strongest growth potential in the world. This transaction bolsters the Group's international leadership status and balances its exposure to markets all around the world."

“The transaction fulfills the Group's requirements for generating shareholder value, satisfies its profitability criteria, and does not compromise either dividend policy or the company's rating”.

India represents a unique opportunity for Abertis to enter a fast-growing market with robust foundations, a stable legal framework and a growing population, with the country set to overtake China as the world's most populous country in the coming decade.

Today India’s infrastructure sector offers the largest number and widest range of opportunities in the world. It is estimated that India requires around US$450 billion of investment in infrastructure development over the next five years, with the majority of funding required roads, power and urban development.