IRB secures fund for Rs.2,090 cr road project

IRB Infrastructure Developers through its Special Purpose Vehicle (SPV), CG Tollway Pvt Ltd, has recently achieved financial closure for its BOT project of six-laning of 124.87 km bypass project on NH-79 between Chittorgarh and Gulabpura in Rajasthan entailing a total investment of Rs.2,090 crore. For the project, which was awarded by the National Highway Authority of India (NHAI), SPV has tied up with the consortium of lenders led by State Bank of India will fund Rs.1,400 crore of the total project cost at an average interest cost of around 10.25% per annum. IRB Infra will infuse sponsor contribution, including internal accruals of Rs.690 crore, towards its contribution in funding the project. According to the Build-Operate-Transfer (BOT) annuity model, the project entails an annual premium payment of Rs.228 crore to NHAI, and the payment will start after three years from the appointed date, said Virendra D. Mhaiskar, Chairman & Managing Director of IRB Infrastructure, said, adding that achieving financial closure for this project will give an upper hand to the company for bidding upcoming NHAI projects.

Published: 20 October 2017