Sadbhav Infrastructure Projects Ltd, a developer and operator of highways, road and related projects, will raise Rs 700 crore ($96 million) through non-convertible debentures.
The statement said that the investor consortium will be led by Allianz Global Investors and joined by AMP Capital. The NCDs will have a tenure of more than four years.
The capital-raise will come as part of a larger funding exercise to help the company repay debt and fund ongoing hybrid-annuity road assets.
The transaction is subject to customary conditions.
“The business environment has been quite challenging and we are thankful to the NCD investors for reposing trust and confidence in Sadbhav despite uncertain times. The investment will infuse sufficient liquidity into the company and will provide resilience and necessary financial strength to our balance sheet over the long term,” said Vasistha C Patel, managing director, Sadbhav.
Sadbhav, a subsidiary of Sadbhav Engineering, develops, operates and maintains highways, roads and related projects. Incorporated in 2007, the company has a portfolio of projects through two models -- build, operate, transfer (BOT) and hybrid annuity.
Its key clients include government agencies such as National Highways Authority of India and Public Works Department.
The firm’s portfolio consists of four BOT projects including Border Check Post in Maharashtra, and nine hybrid annuity ones.