GIC invests $620m in Indian road builder IRB Infrastructure

GIC will hold 49% of the firm and have board representation.

Singapore’s sovereign wealth fund GIC invested $620m to acquire 49% of a private infrastructure investment trust sponsored by Indian road developer IRB Infrastructure, an announcement revealed.

As part of the transaction, IRB will transfer nine of its BOT assets into the private trust and hold a 51% controlling stake. IRB will also have management control over the assets whilst GIC will hold the rights of a financial investor and have corresponding board representation.

IRB said that the investment will be used to reduce debt in its portfolio as well as fund its construction projects.

“IRB and GIC plan to explore future road sector opportunities in India together through the Private InvIT,” said Virendra Mhaiskar, chief managing director of IRB.