A consortium of investors led by Goldman Sachs Inc has agreed to invest $220 million in Essel Highways, the road infrastructure holding company of Subhash Chandra-controlled Essel Group, through a structured debt transaction in one of the biggest fundraising exercises in the sector. Goldman, the lead investor, has already paid an initial $85 million, athird of the total, in exchange for debentures.
Other financial institutions and investors will be investing the remaining portion after corporate milestones are achieved. The funds will be used to finance new projects and strategic acquisitions, the company said in a statement on Friday. The firm has an order book of close to Rs 11,000 crore, its website showed. The group’s infrastructure holding company, Essel Infrastructure, raised $132 million in March from Piramal Group and Dutch pension fund APG Asset Management for its solar power project platform. This is the first investment by Goldman Sachs in Indian roads.