Mumbai; June 03, 2011
IDFC and Khazanah to set up a dedicated infra development company
Mumbai, June 03, 2011: IDFC and Khazanah have agreed to enter into a joint venture (JV) to set up a dedicated infrastructure development company with a focus on road sector in India. Khazanah would hold 80.1 % of the equity share capital in the proposed JV and the balance would be held by IDFC. Khazanah and IDFC also propose to invest in convertible instruments issued by the JV.
The first investment of this JV will be in Jetpur Somnath Tollways Limited (JSTL), subject to receipt of necessary regulatory approvals and permissions, including those from the National Highway Authority of India. JSTL undertakes development of a project involving four-laning the Jetpur-Somnath section of the National Highway-8D in the State of Gujarat. 74% of the share capital of JSTL is currently held by IDFC Projects Limited (IDFCPL). The JV will initially acquire 48% of the share capital of JSTL from IDFCPL and will ultimately acquire the entire shareholding of IDFCPL in JSTL and hold 74% of the share capital of JSTL.”
Infrastructure Development Finance Company Limited (IDFC) is India's premier financial services institution focused on infrastructure. It was set up in 1997 by the Government of India as a financier and catalyst for private sector's involvement in infrastructure development in India. IDFC has evolved into a 'one stop shop' for infrastructure finance in India, meeting the complex and ambitious requirements of an expanding client base.
IDFC's strategy involves all parts of the value chain of infrastructure, providing a differentiated value proposition to its clients. IDFC's domain expertise in infrastructure combined with product breadth – project financing, investment banking and asset management enables it to provide creative solutions to its clients. IDFC has strong relationships with the private sector and government enabling it to provide objective advice and facilitate public-private partnerships in infrastructure. IDFC Foundation helps train government officials on public-private partnerships, provides advice on infrastructure policy and governance issues and on sustainable development strategies.
Khazanah is the investment holding arm of the Government of Malaysia entrusted to manage the assets held by the Government and to undertake strategic investments. Khazanah was incorporated under the Companies Act 1965 on 3 September 1993 as a public limited company. The share capital of Khazanah is owned by the Minister of Finance, a body corporate incorporated pursuant to the Minister of Finance (Incorporation) Act, 1957.
For further details, please contact:
Mr. Arun Raste
Infrastructure Development Finance Company Limited
Tel: + 91 22 42222019