Ferrovial buys 24% of IRB Infrastructure Trust from the Singapore sovereign fund for 740 million euros

MADRID, 14 Mar.

Ferrovial buys 24% of IRB Infrastructure Trust from the Singapore sovereign fund for 740 million euros


Ferrovial, through its toll road subsidiary Cintra, has agreed to acquire 24% of IRB Infrastructure Trust from GIC, Singapore's sovereign fund, for a total of 740 million euros, as the company reported to the National Commission this Thursday. of the Stock Market (CNMV).

IRB Infrastructure Trust is an infrastructure investment trust with 12 highway concessions in India and a committed portfolio of three additional concessions.

Following the closing of the transaction, GIC will continue to maintain a 25% stake in said fund and IRB Infrastructure Developers will retain its current 51%.

Closing of the transaction, pending certain regulatory approvals, is expected by the end of April 2024.

As explained by Ferrovial, the total investment includes 97 million euros to finance pending capital commitments in projects under development by the IRB Infrastructure Trust.

The acquisition price and the outstanding capital commitments will be financed with equity and, possibly, with non-recourse debt, as well as with other sources of financing, detailed Ferrovial, which considers that, with this operation, it completes its investment in the Indian market. and reaches its target size.

The future growth of the IRB Infrastructure Trust will be assessed by Ferrovial and its partners on a project-by-project basis and is expected to be largely funded by platform distributions.

Ferrovial has highlighted that India's infrastructure development plans have grown substantially in recent years, with plans to invest 240 billion euros in roads between 2020 and 2025, according to the report of the Indian Department of Economic Affairs on its National Plan. Infrastructures.

"In this context, the IRB Infrastructure Trust fund is one of the country's leading platforms thanks to its ability to leverage synergies between a large Build-Operate-Transfer (BOT) developer, a leading financial investor and a global strategic partner to optimize the planning and project selection processes, maximizing value creation," he indicated.

IRB Infrastructure Developers, an Indian infrastructure company in which Ferrovial owns a 24.86% stake through its subsidiary Cintra, is one of the largest highway developers in the country, with an asset base of more than 770 billion rupees. .

Since its founding in 1998, it has built more than 18,500 lane kilometers of highway in India. Its business model integrates concessions and construction activities, with an active presence in the development of infrastructure in India and in project awards in the region.