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IRB Infrastructure Trust has approved an investment in IRB Harihara Corridors for the TOT-17 highway project, reinforcing its focus on toll-based road assets. The trust will invest up to INR 36 billion in the SPV, which has also been allowed to raise term loans of up to INR 72 billion. The move supports the acquisition and operation of a national highway under the toll-operate-transfer model. This decision adds to IRB Infrastructure Trust's growing portfolio of long-term, revenue-generating road infrastructure projects.
IRB Infrastructure Trust has approved an investment proposal related to the TOT-17 highway project through its special purpose vehicle, IRB Harihara Corridors. The decision strengthens the trust's exposure to long-term road assets under the toll-operate-transfer framework. Advertisement
As part of the plan, the trust will invest up to INR 36 billion in IRB Harihara Corridors. Alongside the equity investment, the SPV has been permitted to raise borrowings of up to INR 72 billion through term loans. The funding structure is aimed at supporting the acquisition, operation and maintenance of the TOT-17 road asset.
The TOT-17 project is part of the National Highways Authority of India's toll-operate-transfer programme, under which private operators take over completed highway stretches for a fixed concession period in return for an upfront payment. IRB Infrastructure Trust, sponsored by IRB Infrastructure Developers, has been an active participant in this model and already operates multiple highway assets across India.
The latest approval aligns with the trust's strategy of expanding its portfolio of revenue-generating road projects while using a mix of equity and long-term debt to manage cash flows. IRB Harihara Corridors will remain the operating entity for the project, with toll revenues expected to support debt servicing and distributions over the concession period.
Source Reuters
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