Actis, a global investor in sustainable infrastructure, has agreed to purchase a portfolio of six operating highway toll road projects in India from Welspun Enterprises Limited (WEL), part of the Welspun Group, for an aggregate enterprise value of $775 million (₹6,000 crore).

The portfolio benefits from a stable mix of annuity and toll cash flows, with the projects located strategically across India including in the most prominent North-South highway corridor.

This will be the first road investment in India from Actis’ Long Life Infrastructure Fund (ALLIF), which seeks to invest in stabilised operating assets, within multiple infrastructure sectors that deliver a strong cash yield for investors.

Receives AAA local credit rating

Aligning with this objective, five of the six toll roads have a hybrid annuity concession, whereby the concessionaire gets a fixed pay-out to ensure road availability. The concessions for the five projects are awarded by the National Highways Authority of India and have received a AAA local credit rating.

Adrian Mucalov, Partner, Head of Long Life Infrastructure at Actis, said, “This is a strong, first of its kind, investment for ALLIF, which fully aligns with the fund’s core objective to invest globally in infrastructure assets that provide consistent yield for our investors.”

Sumit Sen, Partner at Actis, said, “We are pleased to deepen our commitment to India by supporting the development of some of India’s most exciting infrastructure projects. The toll roads are well diversified and strategically located; they are a highly attractive addition to our portfolio that aligns perfectly with ALLIF’s investment mandate.”

Sen added, “We look forward to pursuing similar long-life infrastructure projects in the future, including WEL’s balance under construction road portfolio.”

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