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IRB Infrastructure Developers Ltd announces the largest equity fundraise of up to INR 5,347 Cr by an Indian road developer through a preferential allotment of equity shares to affiliates of Ferrovial S.A and GIC

IRB Infrastructure Developers Ltd announces the largest equity fundraise of up to INR 5,347 Cr by an Indian road developer through a preferential allotment of equity shares to affiliates of Ferrovial S.A and GIC 1

Mumbai,27 Oct 2021:IRBInfrastructureDevelopersLimited(“IRB”)todayannouncedtwoequityfundraises through preferential allotments to (a) Cintra INR Investments BV (“Cintra”), a 100%subsidiaryofCintraGlobalS.E.and(b)BricklayersInvestmentPte.Ltd,anaffiliateofGIC(“GIC”),Singapore’ssovereignwealthfund.

Cintra Global S.E., a 100% subsidiary of global infrastructure giant Ferrovial S.A (“Ferrovial”),through its subsidiary Cintra would invest equity capital of up to INR 3,180 Cr into India’s largesttoll road developer – IRB; Cintra will have a maximum stake of 24.9% stake in IRB post theirinvestment.

GIC(throughitsaffiliate),wouldinvestequitycapitalofuptoINR2,167CrintoIRBforamaximumstakeofupto16.9%stakeinIRBposttheirinvestment.

ThetotalinvestmentproceedstoIRBfromtheseinvestmentswillbeamaximumofINR5,347Cr.TheissuepriceforboththepreferentialallotmentsisINR211.79pershare.

Mr. Virendra D. Mhaiskar, the Founder Promoter of IRB will continue as the promoter and singlelargestshareholderpostcompletionofthetransactionswithanapproximate34.0%stakeandwillretainmanagementcontrolofIRB.

These equity fund raises will help achieve the twin objectives of Deleveraging and Access toGrowth Capital to participate in the massive infrastructure development and monetization planoftheGovt.ofIndia.

IRB’sexecutioncapabilities,Cintra’sglobalbestpracticesandtechnicalprowesscoupledwithGIC backing as a long-term investor will be a launch pad for IRB to capture unprecedentedgrowthinacapitalefficientmanner.

Thetwotransactionsaresubjecttoexecutionofdefinitivedocuments,approvalofIRBShareholders,receiptofregulatoryandlendersapprovalsandsatisfactionofcustomaryconditionprecedents.

IndicativeUseofProceedsfromtheInvestment

  • DeleveragingoftheCorporateLevelDebt–c.INR3,250Cr
  • GrowthCapitalforCurrentandFutureOpportunities–MaxINR1,497Cr
  • GeneralCorporatePurposes–c.INR600Cr

PostTransactionShareholding

Post the conclusion of the two transactions and maximum investment of INR 5,347 Cr. theshareholdingpatternofIRBwill beasbelow:

Mr.VirendraD.Mhaiskarandaffiliates(Promoter)–c.34.0%,OtherPublicShareholders–c.66.0%

In the eventuality that IRB is unable to issue shares to both investors concurrently (including dueto timing of receipt of regulatory approvals of either investor being longer than the regulatoryapprovalsfortheotherinvestor),thetotalinvestmentwouldgetreducedtoINR4,307Cr–4,462Cr.Theexactquantumwilldependonwhichinvestortransactioniscompletedearlier.

Commentingontheoccasion,Mr.VirendraMhaiskar,CMD–IRBInfrastructureDevelopersLtd.said “We are delighted to welcome Ferrovial through its subsidiary – Cintra into the IRB Family.Through this investment, IRB will deeply benefit in terms of their global experience and bestpracticesinthedevelopment,investment,andoperationoftollroadprojects.Wedeeplyvaluetheexisting relationship with GIC. This new investment by GIC is a further stamp of approval of theirconfidenceontherobustbusinessmodelofIRB.Thestrategyweinitiatedin2017bysponsoringthe first Public InvIT provided IRB a platform for recurrent capital recycling. This strategy wasfurtherstrengthenedin2019bysponsoringthePrivateInvIT,whichenhancedthebusinessmodelbygettingarecurrentinvestorforreducingequitycommitmentsthusincreasingtheabilitytotakein more projects at one time. The current transaction which addresses the twin objectives ofdeleveragingtheholdcodebtandprovidinggrowthcapitalisthefinalstepinoptimizingthecapitalstructure,unleashingthefreecashflowgenerationforgrowth,thuscreatingimmenseshareholdervalue.”

Commentingontheoccasion,Mr.AndresSacristan,CEO–Cintrasaid“ThisinvestmentinIRBInfrastructure Developers represents a great opportunity for Cintra to expand into a new marketfor us — India — that has very promising fundamentals for toll road development. IRB has aportfolio of high-quality assets and a platform with the capability to capture some of the stronggrowth expected in this sector. Cintra would work with IRB to enhance its competitive position intheIndianmarket.OurinternationalexperienceasaninvestorandoperatorwouldoptimizeIRB’soperational capacity and ESG compliance, a field in which Cintra and Ferrovial are internationalleaders”

Commenting on the occasion, Mr. Eng Seng Ang, CIO – Infrastructure at GIC said “Ourinvestment in IRB, a leader in Indian road infrastructure, will enable the company to develop andoperateagreaternetworkofroadsandfurtherenhancetheinfrastructureinIndia.Asalong-termglobal investor, we see India as a key market, given its strong economic fundamentals andinfrastructuredevelopmentpotential.”

AvenerCapitalPrivateLimitedactedastheexclusivefinancialadvisortoIRBforthetransaction.S&RAssociatesactedasalegaladvisortoIRB.

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