A consortium of investors led by 3347 Goldman Sachs has agreed to invest US$220 million in Essel Highways, part of the Essel Group.
This is the US private investment firm’s first foray into India’s road infrastructure market, according to India’s financial media reports.
Essel Highways, a subsidiary of Essel Infraprojects, constructs, develops and operates national and state highways.
Essel Highways, set up in 2007, boasts road assets valued at around $2 billion. It has a road development portfolio of 14 projects, 10 of which are operational, equalling more than 4,400 lane kilometres across six states.
The Financial Express newspaper reported that Ashok Agarwal, chief executive of Essel Infraprojects, said the money will be used to finance new projects and for strategic acquisitions. “The money will strengthen the roads portfolio while the debentures being subscribed to by a reputed institution like Goldman Sachs will help our reputation.”
Investment interest has increased in India’s highways sector has gathered pace in the past year. But, unlike the Goldman Sachs deal, cash has been directed more towards refinancing moves and paying down debt rat, the newspaper said.
Similar to the Goldman Sachs deal is another example of growth-oriented investment - Canada’s CPP Investment Board agreement with L&T IDP in June 2014.
Canada Pension Plan Investment Board (CPPIB) said at the time that its wholly-owned subsidiary, CPP Investment Board Singaporean Holdings would invest around $166 million in L&T Infrastructure Development Projects, a subsidiary of the Indian engineering, construction and manufacturing conglomerate6458 Larsen & Toubro.
It was CPPIB’s first investment in India’s infrastructure sector. Another tranche of $166 million was to be invested a year later, according to a CPPIB statement in 2014.
L&T the largest toll-road concession portfolio in India, including 19 toll-roads spanning over 2,200km. The network connects some of the most important cities, ports and economic corridors in India. L&T IDPL also owns a power transmission line project and a metro project in Hyderabad.
In August last year, Canada's Brookfield Asset Management made its first significant investment in Indian infrastructure with the purchase of six road and three power projects. A consortium of Brookfield and the Core Infrastructure India Fund picked up the projects from India's Gammon Infrastructure Projects for an initial $85 million with more payments based on performance levels, media reported at the time.
This is the US private investment firm’s first foray into India’s road infrastructure market, according to India’s financial media reports.
Essel Highways, a subsidiary of Essel Infraprojects, constructs, develops and operates national and state highways.
Essel Highways, set up in 2007, boasts road assets valued at around $2 billion. It has a road development portfolio of 14 projects, 10 of which are operational, equalling more than 4,400 lane kilometres across six states.
The Financial Express newspaper reported that Ashok Agarwal, chief executive of Essel Infraprojects, said the money will be used to finance new projects and for strategic acquisitions. “The money will strengthen the roads portfolio while the debentures being subscribed to by a reputed institution like Goldman Sachs will help our reputation.”
Investment interest has increased in India’s highways sector has gathered pace in the past year. But, unlike the Goldman Sachs deal, cash has been directed more towards refinancing moves and paying down debt rat, the newspaper said.
Similar to the Goldman Sachs deal is another example of growth-oriented investment - Canada’s CPP Investment Board agreement with L&T IDP in June 2014.
Canada Pension Plan Investment Board (CPPIB) said at the time that its wholly-owned subsidiary, CPP Investment Board Singaporean Holdings would invest around $166 million in L&T Infrastructure Development Projects, a subsidiary of the Indian engineering, construction and manufacturing conglomerate
It was CPPIB’s first investment in India’s infrastructure sector. Another tranche of $166 million was to be invested a year later, according to a CPPIB statement in 2014.
L&T the largest toll-road concession portfolio in India, including 19 toll-roads spanning over 2,200km. The network connects some of the most important cities, ports and economic corridors in India. L&T IDPL also owns a power transmission line project and a metro project in Hyderabad.
In August last year, Canada's Brookfield Asset Management made its first significant investment in Indian infrastructure with the purchase of six road and three power projects. A consortium of Brookfield and the Core Infrastructure India Fund picked up the projects from India's Gammon Infrastructure Projects for an initial $85 million with more payments based on performance levels, media reported at the time.
