GIC, Singapore’s sovereign wealth fund, has provided an interim loan of INR 7 billion ($97 million) to IRB Infrastructure, an Indian highway construction company in Mumbai, people with knowledge of the matter told The Economic Times.
The loan comes on the heels of an investment of INR 44 billion ($615 million) by GIC in IRB’s road platform, which is expected to close in the next two months, according to The Economic Times. The interim loan will be used to meet the immediate business needs of the projects that would become part of the trust.
“This is an interim funding arrangement, which will be adjusted as and when the GIC money gets credited post-closure of the private InVT deal,” an IRB spokesperson told the news outlet.
The larger investment was approved in August and requires IRB to transfer nine of its BOT assets into a private infrastructure investment trust in which IRB will hold a controlling stake of 51 percent, according to a
