Actis to acquire a portfolio of operational hybrid annuity model road assets in India

Actis is expanding its infrastructure footprint in India with the acquisition of operational Hybrid Annuity Model (HAM) road projects from Patel Infrastructure Limited (PIL). This includes two completed assets and plans to acquire two more upon completion. These projects, awarded by the National Highways Authority of India (NHAI), offer attractive, fixed, availability-based revenues with interest rate indexation. Actis aims to enhance India’s road infrastructure, promoting connectivity, economic growth, and sustainability by using recycled asphalt and installing solar PV on toll plazas and offices. This acquisition builds on Actis’ prior investments in Indian toll roads, reflecting its commitment to critical infrastructure in high-growth markets.
Actis to acquire a portfolio of operational hybrid annuity model road assets in India
  • Actis is expanding its footprint in India, with the acquisition of a portfolio of operational Hybrid Annuity Model (HAM) road projects
  • Investing in critical infrastructure in markets with huge growth opportunities and supportive policy regimes for foreign investments
  • Indian road concessions are known for their attractiveness within the infrastructure sector

LONDON, 8 February 2024:  Actis, a leading global investor in sustainable infrastructure, is acquiring a portfolio of operational Indian Hybrid Annuity Model (HAM) road assets from Patel Infrastructure Limited (PIL), to expand their long-life infrastructure footprint in Asia. Actis has completed the acquisition of two completed assets and is in the process to acquire an additional two assets upon completion.

The acquisition of these assets marks a significant milestone in Actis’ portfolio growth in South Asia while also helping improve the road infrastructure in India. The assets, awarded by the National Highways Authority of India (NHAI), are highly attractive given the availability-based fixed revenues with interest rate indexation features. Given the scalable and attractive opportunity set in India, the roads sector is expected to be one of the key pillars of the firm’s investment strategy in the country, with several other transactions in the pipeline.

Actis’ expertise as builders and operators can help to create a better road infrastructure in India, unlocking potential to drive economic growth across the country. Enhanced road infrastructure can promote connectivity, linking remote regions to urban hubs and facilitating access to essential services, education, and job opportunities. Rural-urban disparities can be reduced, which can further ignite economic activities like trade, manufacturing, and agriculture, contributing to higher GDP and employment rates, setting the stage for a brighter and more prosperous future for India. PIL is a renowned Indian EPC developer and contractor with an established track record of 50+ years.

Actis will focus on improving road safety while also using recycled asphalt for major maintenance; and installing solar PV on toll plazas and office buildings, highlighting Actis’ commitment to build sustainable value for the communities in which it works.


Adrian Mucalov, Partner and Head of Long-Life Infrastructure at Actis, said, "The acquisition of these NHAI HAM concessions expands our footprint in India, a market where we see huge potential in both the energy and infrastructure sectors. We invest in critical infrastructure in growth markets where governments look to foreign investment to meet that infrastructure demand. Investing in transport systems such as toll roads can lead to more efficient road usage, improved road safety, reduced car idling and pollution, and lead to quicker journeys with lower emissions while increasing connectivity and growth potential."

The agreement builds on Actis’ experiences in the sector, having already acquired a portfolio of operational toll roads in India in 2022.

Ernst & Young LLP acted as the exclusive financial advisor to Actis on the transaction and Standard Chartered Bank acted as the exclusive financial advisor to PIL.


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Actis
Actis
London, United Kingdom
Actis is a leading global investor in sustainable infrastructure. Actis targets consistent superior returns across asset classes over the long-term, bringing financial and social benefits to investors, consumers and communities. We believe values drive value. Actis is a leading global investor in sustainable infrastructure. We deliver competitive returns for institutional investors and measurable positive impact for countries, cities, and communities in which we operate. Our global experience, operational know-how and strong culture allow us to create global sustainability leaders. We do it at scale. And have been doing so for decades. Since inception, we have raised circa US$25 billion to invest in a better tomorrow. In October 2024, Actis joined forces with General Atlantic, a leading global growth investor, creating a diversified, global investment platform with approximately $87 billion in combined assets under management. Actis operates as General Atlantic’s sustainable infrastructure business. This strategic combination further enhances Actis’ focus as a leader in global sustainable infrastructure.
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