Global Infrastructure Partners (GIP) has appointed a banker for the sale of its Indian road assets, sources close to the transaction said.
Citigroup has been appointed as the banker. The assets are held by a separate subsidiary called Highway Concessions One Pvt. Ltd, one of the sources said.
India’s National Investment and Infrastructure Fund (NIIF), Caisse de dépôt et placement du Québec (CDPQ) and I Squared Capital-backed Cube Highways are said to have been approached by the bankers, two sources said.
“The discussions are at a very preliminary stage,” one of the sources said.
GIP declined to comment. Citi, NIIF, CDPQ and Cube did not respond to requests for comment.
Highway Concessions manages seven road assets of cumulative 1,887 lane kms organized as individual special purpose vehicles—five toll roads and two annuity roads—located across seven states in India, according to its website.
The assets are worth between INR 30bn (USD 423m) and INR 40bn (USD 563m), the first source said.
“This is a normal exit strategy for the fund. New capital will be raised and deployed,” he explained.
The assets are:
- Bangalore Elevated Tollway Pvt in Karnataka
- Godhra Expressways Pvt in Gujarat
- Dewas Bhopal Corridor Pvt in Madhya Pradesh
- Jodhpur Pali Expressways Pvt in Rajasthan
- Shillong Expressway Pvt in Meghalaya
- Ulunderpet Expressways Pvt in Tamil Nadu
- Nirmal BOT Ltd in Telangana
In April last year, GIP bought the infrastructure business of IDFC Alternatives, marking its foray into India.
GIP India manages two India-focused infrastructure funds–the India Infrastructure Fund and India Infrastructure Fund II–with aggregate USD 1.8bn in assets, as per its website.
Over the last 10 years, GIP India has invested in 35 portfolio companies (including 11 exits) across sectors such as energy, transportation, telecom, logistics and urban infrastructure sectors, the website says.
In November 2018, GIP bought an additional 13% stake in Dewas Bhopal Corridor for INR 577m (USD 8.1m), from Welspun Enterprises.
In December 2015, Welspun had sold a 37% stake in Dewas Bhopal Corridor to India Infrastructure Fund-II for INR 6.6bn, including debt.
In October last year, NIIF had acquired of IDFC Infrastructure Finance Ltd., a non- banking finance company that is registered with the Reserve Bank of India as an Infrastructure Debt Fund.