Australian investment manager AMP Capital has agreed to co-finance the portfolio and debt of Sadbhav Infrastructure Project by up to Rs 550 crore ($73 million).
The co-financing for the listed road development company will be done via non-convertible debentures. The proceeds will be used to fund the completion of an ongoing portfolio of Hybrid Annuity Model (HAM) assets and repay existing debt, among others.
The subsidiary of Sadbhav Engineering has a portfolio of nine HAM projects across India and four operating toll projects in Maharashtra, Haryana and Gujarat.
The transaction marks AMP Capital’s maiden deal under its recent Asia infrastructure debt vertical.
Simon La Greca, head of infrastructure debt, Asia, said, “India offers attractive opportunities. We look forward to investing further with high quality and experienced sponsors across the infrastructure sector in India.”
Vasistha C Patel, managing director of Sadbhav Infrastructure, said, “The investment will infuse liquidity into the company for funding our growth and will provide resilience and financial strength to our balance sheet over the long term.”
In December 2020, AMP Capital partnered Sterlite Power for the development of energy transmission projects. AMP Capital is owned by AMP Ltd, one of the largest retail and corporate pension providers in Australia.
It has a presence in real estate and infrastructure and has experience in fixed income, equities and multi-asset solutions. It has been investing in infrastructure since 1988 and had $22 billion of infrastructure equity and debt assets under management as of December 2020.