Global investment manager AMP Capital has committed to co-finance up to Rs.550 Crore (approx. USD 73 million) in Non-Convertible Debentures for listed road infrastructure company Sadbhav Infrastructure Project Limited (“Sadbhav Infrastructure”) on a private placement basis.
The long-term funding provided by AMP Capital will assist Sadbhav Infrastructure to fund the completion of an existing portfolio of road assets across India. This transaction marks the first investment in India for AMP Capital’s recently established Infrastructure Debt Asia strategy.
Sadbhav Infrastructure is one of the leading road companies in India specializing in the development, operation and maintenance of highways, roads and related projects. Its current road portfolio comprises the development of nine Hybrid Annuity Model road projects located across India, and the company currently has four operating toll road projects located in Maharashtra, Harayana and Gujarat. The Hybrid Annuity Model is a public private partnership structure which has been created to support the development of India’s road infrastructure, a priority for the Indian government.
Simon La Greca, Head of Infrastructure Debt Asia at AMP Capital said: “AMP Capital is pleased to make its first infrastructure debt investment in India and support the development of quality road infrastructure which will increase connectivity, promote safe mobility and support growth in the Indian economy.
“India offers attractive opportunities for our Infrastructure Debt Asia strategy, combining a significant infrastructure pipeline with increasingly supportive regulatory and government initiatives to encourage greater involvement of private investors. We look forward to investing further with high quality and experienced sponsors across the infrastructure sector in India.”
Commenting on the transaction, Mr. Vasistha C. Patel, Managing Director of Sadbhav Infrastructure Project Limited said: “We are thankful to AMP Capital for reposing trust and confidence in SIPL and we are excited to partner with them. The investment will infuse liquidity into the Company for funding our growth and will also provide resilience and necessary financial strength to our Balance Sheet over the long term. The proposed fund raising will help SIPL inter alia to repay existing debt and to fund the ongoing portfolio of Hybrid Annuity Model (HAM) road assets of the Company.”
This debt investment follows AMP Capital’s recent equity investment in India, and represents a significant increase in AMP Capital’s commitment to the market. In December 2020 AMP Capital formed a partnership with Sterlite Power for the development of energy transmission projects. AMP Capital continues to consider infrastructure investment opportunities in India.
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About AMP Capital
AMP Capital is a global investment manager with a heritage and strength in real estate and infrastructure, and experience in fixed income, equities and multi-asset solutions. AMP Capital has been investing in infrastructure since 1988 and has US$22bn infrastructure equity and debt assets under management as at 31 December 20201. AMP Capital has been ranked in the top 10 infrastructure managers globally, based on total capital raised.2 AMP Capital is owned by AMP Limited, which was established in 1849, and is one of Australia's largest retail and corporate pension providers.
About Sadbhav Infrastructure Project Limited
SIPL, a subsidiary of Sadbhav Engineering Limited (“SEL”), was incorporated in 2007 as a developer and operator for highways, road and related projects on a BOT basis. Listed on the National Stock Exchange of India, SIPL’s portfolio comprises nine (9) under construction projects under the HAM model and four (4) operating projects across India. In addition to development of road projects, SIPL provides ongoing routine and major maintenance services for a number of road assets.
1 As at 31 December 2020. Figure consists of the Net Asset Value of certain funds and clients managed by AMP Capital taking into account all of the assets less any liabilities. This includes cash and liquidity of such funds in addition to any committed but undrawn capital.
2 Derived from the 2020 Infrastructure Investor 50. Ranking based on the amount of infrastructure direct investment capital raised by firms between 1 Jan 2015 and 31 Aug 2020.
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