Actis has entered into an agreement to purchase a portfolio of six operating highway toll-road projects in India from Welspun Enterprises Limited (WEL) for $775 million.
The projects are being purchased from WEL, part of the Welspun Group, an infrastructure-development company focusing on road, water and wastewater segments
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 stabilized operating assets, within multiple infrastructure sectors that deliver a strong cash yield for investors. Aligning with this objective, five of the six toll roads have a hybrid-annuity concession, whereby the concessionaire gets a fixed payout to ensure road availability. The concessions for the five projects are awarded by
