Ferrovial, through its toll road subsidiary Cintra, has agreed to acquire a 24% stake in IRB Infrastructure Trust, an investment vehicle that holds a portfolio of 12 toll road concessions in India with a committed pipeline of three additional concessions, for a total investment of €740 million (considering an exchange rate of 89.0 EUR/INR). Ferrovial is acquiring this stake from affiliates of GIC, which currently own a 49% stake of IRB Infrastructure Trust. After the transaction is closed, GIC’s affiliates will retain a 25% stake in IRB Infrastructure Trust and IRB Infrastructure Developers will maintain its current 51% stake. Closing of the transaction, subject to certain regulatory approvals, is expected to occur by the end of April 2024.
India’s infrastructure development plans have expanded substantially in recent years with planned capital expenditures of €240 billion in roads and highways between the years 2020-2025, according to the Indian Department of Economic Affairs report on National Infrastructure Pipeline. In this context, IRB Infrastructure Trust is one of the leading platforms in the country with the ability to leverage synergies between a large Build-Operate-Transfer (BOT) developer, a leading financial investor, and a global strategic partner to optimize project planning and selection processes and maximize value creation.
IRB Infrastructure Developers, an Indian infrastructure company in which Ferrovial, through its subsidiary Cintra, holds a 24.86% stake, is one of the country’s largest toll road developers with an asset base of over INR 770 billion. Since its inception in 1998, it has built more than 18,500 lane kilometers of roads in India. Its business model integrates concessions and construction, and has a very active presence in infrastructure development in India and an excellent track record of project acquisitions in the region.
