I Squared's toll road platform buys IL&FS asset for $21m

The deal will see Cube take over IL&FS's entire stake in Andhra Pradesh Expressway (APEL), the operator of a 75-kilometer stretch of the NH-7 highway in the states of Andhra Pradesh and Telangana, according to a filing. Cube will also assume about INR5 billion in debt associated with the project. Completion of the deal is subject to approval from regulators and creditors of APEL.

With the acquisition of APEL, Cube's toll road portfolio covers nearly 1,300 lane-kilometers. APEL has a seven-year operating history and receives fixed semi-annual payments from India's transportation authority without regard to traffic volume, making it an attractive investment for the firm.

Cube was formed in 2014 with the backing of I Squared and International Finance Corporation (IFC), the investment arm of the World Bank. It seeks majority stakes in businesses with operational history and established historic cash flows.

The APEL deal marks Cube's fourth investment in India. Its portfolio includes Madhucon Agra-Jaipur Expressways, manager of a stretch of the NH-11 road between Mahua and Bharatpur in Rajasthan, which it bought last year for INR2.48 billion, along with an additional stretch of NH-11 between Mahua and Jaipur acquired in 2014 and a 51% stake in the Western UP Tollway bought from NCC Infrastructure Holdings earlier this year.

I Squared has offices in the US, the UK, India, Hong Kong and Singapore. It closed its global infrastructure fund last year at $3 billion; other infrastructure assets in Asia include a Chinese waste water treatment plant and Amplus Energy Solutions, an India-based owner and operator of distributed rooftop solar power.

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• Topics
• South Asia
• Infrastructure
• Buyouts
• Infrastructure
• Infrastructure
• India
• IFC
• Logistics
• I Squared Capital