Maple Highways targets growth in India with new funding and asset deals
A major Canadian pension-backed player is moving to expand its footprint in India’s infrastructure sector.
Maple Highways Pte Ltd is in advanced talks to raise about US$200m through a bilateral offshore loan, according to people familiar with the matter, as reported by Bloomberg.
Maple Highways is backed by Caisse de Depot et Placement du Quebec, Canada’s second largest pension fund.
The proceeds from the loan, which is being arranged with French bank Societe Generale SA, will be infused into an infrastructure investment trust and used to acquire road assets, the sources said.
Maple Highways is currently in the process of acquiring five road assets from Ashoka Buildcon Ltd, with the deadline for the transaction recently extended to September 30 from June 30, according to the same sources.
The loan could have a three-year tenor, though details are still being finalized, as per those familiar with the negotiations.
Societe Generale and the borrower are working on documentation for the deal, and the information remains private, according to Bloomberg.
Societe Generale has been ramping up its operations in India, having committed up to US$1bn in financing and advisory services to ReNew Energy Global Plc more than a year ago.
Acquisition financing, where domestic banks face restrictions, presents an opportunity for international lenders to expand in India, particularly through private credit funds, according to a report from consultancy firm Ernst & Young.
Maple and CDPQ did not reply to Bloomberg’s emails seeking comments, while Societe Generale declined to comment.
