Infrastructure firms deleverage balance sheets through sale of road assets
ROADS & HIGHWAYS

Infrastructure firms deleverage balance sheets through sale of road assets

There is, reportedly, a recent trend following infrastructure construction firms as most of them are taking steps to monetise their road assets. 

The move highlights two primary facts, first, the ability of firms to deleverage and gain value arising from the sale and second, the investors’ interest towards the road assets. 

As reported, Singapore’s Cube Highways and Infrastructure took control of five hybrid annuity model (HAM) road projects that are under-construction through an agreement signed with Dilip Buildcon, which detailed the sale of 100 per cent stake in the projects. Additionally, in a separate agreement the construction company also recently sold its road projects to Mumbai based Shrem Group.  KNR Constructions too, entered into a share purchase agreement with Cube Highways for three of its road assets. 

In terms of financial stress faced by these infrastructure companies, the step is seen as a means of significantly reducing the same.  The sale of stakes releases all funds locked into the project and allows for it to be incorporated into future bids or as growth capital.  Asset monetisation is, therefore, a comparatively reliable means towards achieving stable growth. 

There is, reportedly, a recent trend following infrastructure construction firms as most of them are taking steps to monetise their road assets. The move highlights two primary facts, first, the ability of firms to deleverage and gain value arising from the sale and second, the investors’ interest towards the road assets. As reported, Singapore’s Cube Highways and Infrastructure took control of five hybrid annuity model (HAM) road projects that are under-construction through an agreement signed with Dilip Buildcon, which detailed the sale of 100 per cent stake in the projects. Additionally, in a separate agreement the construction company also recently sold its road projects to Mumbai based Shrem Group.  KNR Constructions too, entered into a share purchase agreement with Cube Highways for three of its road assets. In terms of financial stress faced by these infrastructure companies, the step is seen as a means of significantly reducing the same.  The sale of stakes releases all funds locked into the project and allows for it to be incorporated into future bids or as growth capital.  Asset monetisation is, therefore, a comparatively reliable means towards achieving stable growth. 

Next Story
Infrastructure Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?