I Squared Capital infrastructure funds have invested $200m (€168m) in AG&P City Gas, a Singapore-based company developing twelve city gas distribution networks, or concessions, in India.

The global infrastructure investment manager said its ISQ Global Infrastructure Fund III and ISQ Growth Markets Infrastructure Fund, invested the capital in the first tranche of a $300m fundraising in AG&P City Gas.

Gautam Bhandari, managing partner at I Squared Capital, said: “Like AG&P, I Squared Capital was one of the earliest foreign institutional investors in India’s town gas industry, and the company is committed to helping the country meet its target of 15% natural gas in India.

“its primary energy mix by 2030. We anticipate up to $ 1.3bn in capital spending to build distribution networks.”

Joseph Sigelman, president and CEO of AG&P Group, said: “AG&P has the privilege of partnering with I Squared Capital to accelerate the deployment of these vital gas networks, currently being developed in India by AG&P City Gas.”

Harsh Agrawal, partner at Singapore-based I Squared Capital, said: “The transaction is based on the experience of I Squared Capital in the development of a town gas infrastructure in India via its THINK Gas platform.

“The concessions cover some of the fastest-growing cities in India such as Jodhpur, Kanchipuram (including the southern region of Chennai), Mysore and Thiruvananthapuram (otherwise known as Trivandrum). AG&P City Gas and THINK Gas are geographically complementary and will operate as independent companies with separate management teams.

Abhilesh Gupta, managing director of AG&P City Gas, said: “We see AG&P City Gas playing a vital role for India. A transition to natural gas will reduce pollution and promote a healthier environment for all of us, including our children, while supporting our growing manufacturing sector by creating jobs.”

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