YIELD acquires twin annuity assets in road sector

Edelweiss Infrastructure Yield Plus (YIELD+), an AIF managed by Edelweiss Alternative Asset Advisors Ltd. (EAAA), along with its portfolio company Sekura Roads Limited (SRL), has announced the acquisition of two annuity road assets - Navayuga Dhola Infra Projects Limited (in Assam) and Navayuga Dibang Infra Projects Private Limited (in Arunachal Pradesh). These assets have been acquired from Navayuga Road Projects Private Limited (NRPPL) - a subsidiary of Navayuga Engineering Company Limited (NECL), making this one of the first road infra deals during the lockdown.

With an AuM of over Rs. 28,000 crores, EAAA focuses on providing long-term growth capital to corporates. “Acquiring operating infrastructure assets provides impetus to the revival of the sector by helping construction companies to release capital and de-lever, enabling them to commence new projects which contribute to nation building. This is becoming the core model to meet India’s infrastructure capital requirement," said Hemant Daga, Deputy CEO, Edelweiss Global Investment Advisory

“We are happy to see the acquisition of these high-quality road assets to the Sekura Roads portfolio. This is in line with our strategy of investing in Infrastructure assets which can deliver predictable long-term yield to our investors. We now have a healthy portfolio of operating transmission and operating annuity road assets," said Subahoo Chordia, Head of Edelweiss Infrastructure Yield Plus. Confirming the development, Sachin Bhansali, CFO, Navayuga Group, said, “We are looking to de-leverage our balance sheet and asset monetization is a critical component. This transaction will significantly ease the debt position of the Group and help free up cash.”

With the government’s thrust on boosting economic activity in North Eastern India, the Dhola and Dibang roads are of strategic importance because they ensure seamless all-weather connectivity between North East and the rest of India. The Dhola bridge - the country’s longest river bridge - was inaugurated by the Prime Minister in 2018; it has opened new doors for economic development in the states of Assam and Arunachal Pradesh.