A Singapore-based infrastructure-focused fund which counts IFC, Washington and Abu Dhabi Investment Authority among its investors, has acquired the concession of a 4-lane tolled highway connecting Behrampore and Farakka in Bengal.
Cube Highways & Infrastructure V Pte Ltd, the Singapore firm which has picked up many road assets in India, acquired Behrampore-Farakka Highways Limited (BFHL) from debt-laden HCC Group for an enterprise value of Rs 1,323 crore.
BFHL, a special purpose vehicle of HCC Concessions Ltd, was incorporated in 2010 to design, build, finance, operate & transfer (DBFOT) toll of the 4-lane highway between Behrampore and Farakka section of National Highway-12 (earlier NH-34) in Bengal under NHDP Phase III.
BFHL covers 101 km of the busiest section of Bengal’s main artery, NH-12.
The NHAI had granted a concession period of 25 years (extending to 30 years) to the company and the BFHL commenced commercial (toll) operations on May 14, 2014.
As part of the financial transaction, HCC Group is to receive a total of Rs 941 crore which includes an upfront amount of Rs 677 crore payable by Q3 of FY24 and another Rs 264 crore by Q1 of FY25, contingent on traffic projections. The transaction also includes taking over the SPV debt of Rs 646 crore.
