Founded in 1971, OSE is one of the leading highway Engineering, Procurement and Construction (“EPC”) player in India. OSE is owned by the Bakshi and Sethi families of Delhi. OSE currently manages a portfolio of 13 operating road assets along with Oriental Tollways Private Limited (“OTP”), its wholly owned subsidiary. As part of the Project, 5 operating road assets have been transferred to the InvIT. There are currently 6 investors including OSE in the InvIT.

IFC proposes to provide a financing package of up to INR 30,825 million including a local currency A loan / Non-Convertible Debentures (“NCDs”) investment of up to INR 4,875 million for a tenor of up to 14 years, mobilization of up to INR 24,000 million of Parallel Loans, and up to INR 1,950 million of investment in the units issued by the InvIT. Overall, the InvIT has raised around INR 23,000 million as Unit Proceeds. Proceeds of the investment would go towards refinancing of the existing debt, fresh capital expenditure, reducing the existing leverage of the projects and repayment of shareholders’ loan.

The InvIT has 5 operating road assets having geographical presence across four states in India with concessions from National Highway Authority of India. Going forward, the InvIT is likely to acquire more assets.

 This is considered as a category A project as per IFC's Policy on Social and Environmental Sustainability as: (a) the sector in which the InvIT will operate, roads and highways, is potentially high risk; (b) some of the five roads that may be transferred to InvIT are high risk and the ESDD indicates that there are risks and impacts related to: (i) residual/ balance land and right of way (RoW) acquisition with potential for physical and/or economic displacement in one of the roads; (ii) communities of indigenous peoples (IPs) in two roads; (iii) critical and natural habitat potentially affected by one of the roads; and (iv) cultural heritage; and (c) the pipeline of future assets and their associated risks and impacts are not known at this stage, and each asset to be acquired may have impacts of varying significance on one or more aspects that are contemplated in the PSs.