The Union government has permitted the construction major Larsen and Toubro to form a business trust in Singapore and list of its six toll road projects on the Singapore stock exchange that could raise up to $1 billion. The National Highways Authority of India board has approved the L&TÂ’s plans to set up the trust.
L&T Infra Development Projects Ltd (IDPL), L&T’s subsidiary will set up the business trust and the parent company can offload its equity in these six road projects to the trust. The trust will have to form a special purpose vehicle, which will float or issue units to investors on these assets through an initial public offer.
The trust will then issue debt instruments in the form of debentures to the SPVs undertaking these highway projects.
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