3i India Infrastructure Fund Makes $182m Investment in GVK Energy

08 Nov 2010

GVK Power and Infrastructure Limited (GVKPIL), one of India's leading infrastructure developers today signed an agreement with 3i India Infrastructure Fund to lead an investment of Rs. 1200 crores ($260m) for a 21.1%  minority stake in GVK Energy Limited, a wholly owned subsidiary of GVKPIL. 3i India Infrastructure Fund will invest $182 million of the total.

GVK Energy's power portfolio comprises an operational capacity of 901 MW with a further 4200 MW under various stages of development.

3i India Infrastructure Fund is a US$ 1.2 billion investment fund, established by UK private equity firm 3i Group plc to invest in a diversified portfolio of infrastructure investments in India, focusing on the port, airport, road and power sectors.

Speaking on the occasion, Mr. G V Krishna Reddy, Chairman, GVKPIL said: "GVK has been a pioneer in the infrastructure sector in India, having developed India's First Independent Power project. Today we are poised to significantly grow our energy business to meet the growing demand in India. This transaction is an indicator of GVK's ability to create value in its businesses for the benefit of our stakeholders."

Anil Ahuja, Managing Director and Head of 3i Asia, commented on the transaction: "GVK is well positioned to take advantage of the demand for power in India, which is growing strongly. This investment allows us to take a stake in a portfolio of power projects with an operator with one of the best track records in the country."

For more information:

Isabel Unsworth,  +44 20 7975 3190

Notes to Editors

About GVK Power and Infrastructure
GVK is amongst India's largest infrastructure developers with experience and expertise spanning areas including Energy, Airports, Roads and Urban Infrastructure.  As on date GVK has invested over Rs.10,786.02  crore into infrastructure projects and has on hand projects in the pipeline of over Rs. 25000 crore.

About 3i
3i is an international investor focused on Private Equity, Infrastructure and Debt Management, investing in Europe, Asia and North America. Our competitive advantage comes from our international network and the strength and breadth of our business relationships. These underpin the value that we deliver to our portfolio, shareholders and fund investors.

www.3i.com