Bharat Road Network (BRNL), a road developer along with its partners, has signed an agreement with the India Highway Concession Trust, an infrastructure investment trust set up by Caisse de dépôt et placement du Québec (CDPQ), a global institutional investor, for the sale of a BOT road project in the state of Odisha.
The share purchase agreement provides for complete transfer of ownership of Shree Jagannath Expressway, the special purpose vehicle (SPV) engaged in the development, operation and maintenance of 67 km toll road project from Bhubaneswar to Chandikhole.
BRNL is currently the largest shareholder with 40 percent stake in this project. The project operations started in December 2011, with an initial concession period of 26 years.
The transaction is in line with the company’s strategic plan for stakeholder value creation through portfolio assets reallocation while focusing on enhancing operational excellence and increasing financial efficiencies in the existing assets.
The transaction is expected to help BRNL in reducing its debts and will also provide the company with funds for reinvesting in its existing assets under construction.
Moreover, it will be the first asset integrated into the new CDPQ-owned road platform in India, which was set up in 2020.
The transaction is subject to regulatory approvals and other closing conditions.