IRB Infra plans to offer Vadodara Kim Expressway HAM Project to the IRB InvIT Fund; Company’s Board approves the proposal
Mumbai, June 8, 2022: IRB Infrastructure Developers Ltd. has offered its Vadodara to Kim Expressway project, being developed under Hybrid Annuity Model, to its Public InvIT, IRB InvIT Fund.
The Company Board, in its Board Meeting held today has approved the preliminary non-binding proposal for transfer of the said project to the IRB InvIT Fund, which is a publicly offered and listed Infrastructure Investment Trust sponsored by the Company. While commenting on the development, Mr. Virendra D. Mhaiskar, Chairman & Managing Director of the Company said, “As next step to our strategy of unlocking capital to fuel further growth, we have presented a non-binding offer via Concept paper for transfer of our first HAM asset – VK1 to IRB InvIT Fund. The project offers meaningful cashflow visibility over 15 years to the Public InvIT and the transaction will release cash to IRB to fund its future pipeline. Post interaction with Public InvIT and its unitholders, formal offer will be made to take the process forward. We are hopefulofsuccessfully closing the transaction withinthis calendar year.” He added, “This would bring a win-win situation while enhancing value for all Stakeholders of IRB Infra and IRB InvIT Fund.”
To re-iterate, the Vadodara Kim Expressway Project had recently received a provisional completion certificate and is revenue generating operational asset that is currently part of Company’s portfolio. It is eight-laning of the Vadodara to Kim stretch in the State of Gujarat under NHDP Phase-VI under the Hybrid Annuity Mode (Phase IA-Package I) with the cost outlay of Rs.2,094 Crores.
The VK1 Project is being implemented by VK1 Expressway Private Limited, a wholly-owned subsidiary of the Company, under a concession awarded by the National Highways Authority of India.