HCON will be entitled to a material revenue share for the life of the concession. HCON will be securitizing part of these future BFHL receivables via a loan of up to Rs.300 crore, resulting in total liquidity to the Group of up to ₹900 crore. BFHL has a balance concession period of ~19 years. The transaction is subject to closing adjustments, customary due diligence and approvals, including from the NHAI. The financial advisor for this transaction is Edelweiss Financial Services Ltd.
BFHL is a 101 km highway that forms part of the main arterial National Highway 12 (earlier National Highway 34) in West Bengal connecting Kolkata and port of Haldia to North Bengal and North-Eastern states of India. Out of 101 km, BFHL is currently tolling 90 km and the balance 11 km of Baharampore Bypass will be tollable post-completion in Q4 FY23 which will increase the normal toll revenue by ~45%.
Arjun Dhawan, HCC’s Group CEO, said, “HCC is proud of its PPP track record, having developed & operated ₹7,000 crore of value-generating BOTs. The sale underscores our commitment to creating liquidity that will bolster both operations and future business growth."
