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IFC to invest in ISQ affiliate in India

The IFC is considering an equity investment of up to $90m in Road Holdco, a holding company created by I Squared Capital.

The International Finance Corp. (IFC) is considering an equity investment in a holding company created by I Squared Asia Advisors (ISQ) that will primarily acquire operating road assets in India, according to the project database on its website.

The equity investment in Road Holdco by the World Bank Group member will be up to $90 million, the database showed.

In addition, the IFC will also consider providing refinancing for the debt of the roads that Road Holdco will acquire, with a total debt investment of up to $150 million.

ISQ is currently in advanced stages of evaluating multiple operational toll roads to be acquired by Road Holdco.

The holding company may also acquire other transportation and logistics assets such as parking facilities, logistics infrastructure, and other such assets, according to the database.

The investment commitments by the IFC are in line with its support for road infrastructure in India, which is a priority for the government.

The IFC will also create a new investment vehicle to demonstrate the potential of consolidation of assets as a medium for channeling long term risk-averse capital into Indian infrastructure projects. The investment will also seek to unlock developer equity and provide impetus to further infrastructure growth in the country.

Through IFC’s investment, Road Holdco will be able to get attractive terms when refinancing debt and de-risking the business model further, the organisation said.