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Mumbai, 25th February 2020: IRB announces receipt of the first tranche of the Investment of INR 3753 crores from GIC affiliates out of its commitment of INR 4,400 crores by IRB Infrastructure Trust. The balance commitment will be invested on the progress of construction of the under-construction projects. The allotment of units to the Investors will happen by February 27th, 2020. Post the allotment of units, IRB will hold 51% and GIC affiliates will hold 49% stake in the Private InvIT.

This is the largest transaction in the roads and highways sector in India. The net revenue of the Portfolio in FY 2019 was c. INR 630 crores. Upon completion of construction of the 9 BOT assets, the Enterprise Value of the Private InvIT will be c. INR 22,500 crores.

Commenting on the occasion, Mr. Virendra Mhaiskar, Chairman and Managing Director, IRB said “With this investment for the largest transaction in the roads and highways sector, a meaningful long-term association has been forged with GIC, one of the world’s leading Sovereign Wealth Funds. It demonstrates the continued faith investors have in us and showcases our strength as a sector leader. We welcome GIC to the IRB family and look forward to growing this platform by exploring the future opportunities in the roads and highways sector together.”

Mr. Ang Eng Seng, Chief Investment Officer of Infrastructure at GIC, said “We are pleased to partner IRB, one of India’s largest private road and highway developers, in this investment. This platform will not only give us exposure to a large, well-positioned and diversified portfolio of toll roads in India, but also enable IRB to continue growing their business. India remains a key long-term market for GIC given its strong economic fundamentals and infrastructure development potential.”

Bajaj Consultants Private Limited acted as the exclusive financial advisor to IRB for the transaction.

S&R Associates acted as the legal advisor to IRB and Nishith Desai Associates acted as the legal advisor to GIC affiliates.

About the Transaction

As part of the transaction, IRB will transfer 9 of its BOT assets (“Portfolio”) into a Private InvIT in which IRB will hold a controlling stake of 51%. The Portfolio spans across c.5,900 lane kms in Haryana, Uttar Pradesh, Rajasthan & Gujarat, Maharashtra and Karnataka. All 9 assets in the Portfolio are revenue generating assets. As part of the transaction, GIC affiliates will invest up to c. INR 4,400 crores. The investment proceeds will be used for deleveraging the portfolio and for equity funding for under- construction projects.