Report: Morgan Stanley to invest $200m in Isolux Corsan

The $4bn infrastructure fund is reportedly seeking an equity stake in the Indian subsidiary of the Spanish construction company, which is active in the country’s burgeoning roads sector.

Morgan Stanley Infrastructure Partners, the $4 billion infrastructure fund managed by investment bank Morgan Stanley is in talks to make a $200 million equity investment in an Indian road construction company, local media reported.

The Economic Times of India cited people familiar with the negotiations as saying the fund is looking to buy an equity stake in the Indian arm of Spanish construction company Isolux Corsan, which builds roads in North India.

Roads rank among the busiest infrastructure sectors in India. Kamal Nath, India's former minister of Road Transport and Highways, said in June the Indian government will be offering 12,000 kilometres of road contracts over the next 12 months and would need $48 billion of private capital to help meet its ambitious road building needs.

Morgan Stanley’s deal with Isolux Corsan would mark at least the second Indian investment for the global infrastructure fund, which closed on $4 billion in May 2008. Last March, the fund teamed up with private equity investors General Atlantic, Norwest Venture Partners, Everstone Capital and Goldman Sachs Investment Management to invest $425 million in Asian Genco, a Singapore-based infrastructure developer with a  large portfolio of power assets in India.

A Morgan Stanley spokesperson declined to comment on the report. A spokesperson for Isolux Corsan also declined comment.