Spanish infrastructure developer Ferrovial, through its subsidiary Cintra, has struck a deal to acquire a significant stake in IRB Infrastructure Trust, alongside a similar investment in MMK Toll Road Pvt Ltd, the investment manager of the trust, as announced by IRB on March 14.
The transaction, valued at nearly $800 million according to sources familiar with the matter, marks a strategic move by Ferrovial to deepen its footprint in India’s infrastructure landscape.
Subject to regulatory approvals and other necessary conditions, the secondary stake purchase underscores Ferrovial’s confidence in the growth potential of India’s infrastructure sector, particularly in road assets operated by IRB Infrastructure Trust, an infrastructure investment trust (InvIT).
GIC, a sovereign wealth fund of Singapore, first entered into the IRB Infrastructure Trust in August 2019 with a significant investment of Rs 4,400 crore, acquiring a portfolio of nine toll roads. Ferrovial’s latest investment in the IRB group builds upon its previous stake acquisition in the listed flagship of the group, IRB Infrastructure Developers, in 2021.
Cintra CEO Andres Sacristan expressed the company’s commitment to collaborating with GIC and IRB to drive further value from the growth trajectory of IRB Infrastructure Trust. He highlighted the shared vision of delivering high-quality sustainable infrastructure projects and emphasized the synergy between the companies in maximizing the potential of the infrastructure pipeline ahead.
