In order to generate sufficient funding flow to its new road projects, Sadbhav Infrastructure Projects Ltd. is all set to sell two of its toll-based operational road assets to unlock value and use the proceeds to build new highways, Executive Director, Vasistha Patel said. In this connection, he further added that it has initiated negotiations with certain investors for selling its entire holding in two build, operate, and transfer (BOT) toll road projects including Dhule Palesner Tollway and Bijapur-Hungund Tollway. The company has five new hybrid annuity-based road projects to build. As of now, it has a total of 18 projects in its portfolio, which include operational as well as on-going projects, and is currently one of the largest developers of national and state highways. Sadbhav has initiated discussions with Canadian pension funds as it is looking to earn equity value of about Rs. 500-cr from the Dhule-Panesar asset and equity value of about Rs. 350-cr from the Bijapur asset. The total or enterprise deal values of the assets, including debt, will be much higher. Canada‘s largest pension funds— Canada Pension Plan Investment Board (CPPIB), Caisse de Depot et Placement du Quebec (CDPQ), and the Public Sector Pension Investment Board (PSP Investments) in the recent past stepped up investments in the Indian infrastructure sector. They have already committed at least $3 billion in roads and renewable energy projects.
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