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IRB Infra gets NOC from NHAI for transfer of 9 BOT assets

Jan 5, 2020, 16:54 IST
PTI
New Delhi, Jan 5 () IRB Infrastructure Developers on Sunday said it has received a no objection certificate from the NHAI for transfer of nine BOT (build-operate-transfer) assets to IRB Infrastructure Trust and subsequent investment by GIC affiliates for 49 per cent stake in the Trust.

In a filing to the BSE, the company said it has "received NOC from NHAI for transfer of nine of IRB Infrastructure Developers Ltd BOT assets to IRB Infrastructure Trust..."

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"SEBI has already granted the Certificate of Registration...to the Trust to which the company is a Sponsor, to carry out the activities as an InVIT, subject to the conditions specified in the SEBI Act, 1992 and the Regulations made thereunder. Further, 98 per cent of our lenders have approved their NOCs supporting the deal and we expect to close the balance shortly," it said.

In August 2019, the company had announced signing definitive agreements with GIC affiliates, for an investment up to Rs 4,400 crore -- amounting to 49 per cent stake in a portfolio of 9 of its assets through Private InvIT structure (viz IRB Infrastructure Trust), while IRB retains controlling stake of 51 per cent in the Trust.

The portfolio spans across l,200 kms in Haryana, Uttar Pradesh, Rajasthan & Gujarat, Maharashtra and Kamataka.

Three of these projects are operational and balance six are under various stages of construction.

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Five of the assets under construction are four to six laning projects, where tolling as well as construction has already begun. These projects are strategically located along economic corridors and across tourist hubs.

The Investment proceeds from the deal will be used for part deleveraging of the portfolio and equity funding for under construction projects of the portfolio

As the project manager for the Trust, IRB will execute the balance construction and O&M for the Portfolio.

GIC will also hold 49 per cent in the Investment Manager (IM) entity to manage the Trust.

This transaction will significantly deleverage the said portfolio, and give IRB material equity support for construction completion, enhancing its project execution capabilities and increasing visibility for its EPC and O&M order book. SID MKJ

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