Macquarie SBI fund acquires additional stake in Indian road

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Macquarie SBI fund acquires additional stake in Indian road

Macquarie SBI Infrastructure Fund has acquired the remaining stake in the Indian Ulundurpet - Padalur section of NH-45 road PPP project from IJM and Shapoorji Pallonji.

In November 2013 the fund acquired a 74% stake in the project from IJM and Shapoorji Pallonji for Rs 2,750 million. Afther the new acquisition Macquarie SBI Infrastructure Fund will hold a 100% interested in the project.

National Highways Authority of India (NHAI) has allowed 100% divestment of shareholding of the road concession and this transaction is the first initiative of its kind in which the existing shareholder have been permitted to divest their equity.

The project entailed the 4-laning of the 92.75 km stretch on National Highway 45, and subsequently operating and maintaining it for 20 years under a concession with NHAI. The project started commercial operation in September 2009. The road is located in the State of Tamil Nadu, India.

The move will allow highway developer to invest proceeds from the sale of divested equity in incomplete projects or to retire their debt to financial institutions. This will result in physical completion of languishing infrastructure projects. It is expected that a large number of developers are likely to benefit from this opportunity for circulation of funds in infrastructure sector.

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