Morgan Stanley Infrastructure & Grupo Isolux Corsán to invest US$ 1.6 bn in JV

Morgan Stanley Infrastructure Partners (MSIP) along with Isolux Corsán Concesiones will be constructing three highway projects in India under long term a concession agreement that was awarded through the Build-Operate-Transfer (BOT) program of the National Highways Authority of India (NHAI). The total cost of the project would be US$ 1.6 billion, out of which MSIP will invest US$ 200 million and Grupo Isolux Corsán, a global company that specialises in large projects across construction will invest US$ 400 million. The entire project is one of the largest foreign investments in Indian transport infrastructure till date.
 
The companies have already received debt financing from leading financial institutions and substantial equity investment from Isolux Corsán. The projects are expansions of existing roads, and will link major cities, industrial hubs, as well as ports and tourist attractions. In addition to these three projects, Isolux Corsán has qualified to bid on several new NHAI projects.
 
“We are very pleased to have concluded an exclusive deal for this addition to our global fund. This joint venture offers an excellent opportunity for Morgan Stanley Infrastructure to pursue its overall strategy of creating a stable portfolio of assets diversified by sector and geography. This platform will leverage Isolux Corsán’s strong credentials in developing infrastructure assets for emerging markets and its proven ability to work with local construction companies.” said Sadek Wahba, Global Head of MSI and Chief Investment Officer of MSIP.
 
Grupo Isolux Corsán CEO, Antonio Portela added, “This investment represents the recognition of our strategy in India and the confidence in our expertise in the development of large infrastructure projects in emerging markets. We believe that Isolux Corsán Concesiones and Morgan Stanley Infrastructure will together capitalise on the Indian roads opportunity and create a best-in-class road portfolio company in the years to come.”
 
MSI Asia Head Gautam Bhandari said, “The joint venture with Isolux Corsán Concesiones adds to our successful presence in India’s transportation sector, providing us with an excellent road concession platform in a market that is experiencing rapid urbanisation and dramatic growth in vehicles.”

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