Road developer IRB Infrastructure has received No Objection Certificate (NOC) from National Highway Authority of India (NHAI) for transfer of nine of its Build Operate Transfer (BOT) assets to IRB Infrastructure Trust and subsequent investment by GIC affiliates for 49 per cent stake in the Trust.

SEBI has granted the Certificate of Registration to the trust, for which IRB 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, IRB said in a filing.

Further, 98 per cent of our lenders have approved their NOCs supporting the deal and we expect to close the balance shortly, it added.

In August 2019, IRB had signed definitive agreements with GIC affiliates, for an investment upto Rs 4,400 crore , which amounts to 49 per cent stake in a portfolio of nine of its assets through IRB Infrastructure Trust, while IRB retains controlling stake of 51 per cent in the trust. This is a private InvIT.

The portfolio spans across 1,200 kms in Haryana, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra and Karnataka. Three of these projects are operational and balance six are under various stages of construction. Five of the assets under construction are 4 to 6 laning projects, where tolling as well as construction has already begun. These projects are strategically located along economic corridors and across tourist hubs.

IRB said that the Investment proceeds from the deal will be used for deleveraging its portfolio and equity funding for projects under construction in its portfolio.

Further, as the project manager for the Trust, IRB will execute the balance construction and operations and maintenance for the portfolio.

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

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