IRB Infrastructure Developers Subsidiary Achieves Financial Closure

Business

oi-Sunil Fernandes

By Sunil Fernandes

Updated: Friday, June 1, 2018, 17:03 [IST]

IRB Infrastructure Developer's subsidiary, IRB Westcoast Tollway Pvt. Ltd, has achieved financial closure in terms of the Concession Agreement executed with NHAI, by tying up of project finance of Rs 1,406 Crore.

The total cost of the project was Rs 2,639 crore, out of which viability gap funding from NHAI of Rs 536 crores, equity contribution by the company will be approx. Rs. 697 crore and remaining is to be funded through project finance of Rs 1,406 Crore. The average cost of this project finance is approx. 11.75 per cent per annum.

A consortium of lenders comprising of IDBI Bank Limited - lead institution, Allahabad Bank, Bank of Baroda, Bank of India, Canara Bank and Union Bank of India have financed this project.

"The Company has now received an official communication from the National Highways Authority of India ("NHAI") by way of a Letter of Award ("LoA") dated December 24, 2013 whereby NHAI has accepted our Price Bid and has declared us as the "Selected bidder" for the project of Four Laning of Solapur to Yedeshi section of NH-211 from km 0.000 to km 100.000 (Design Length 98.717 km) in the State of Maharashtra under NHDP Phase IV on Design, Build, Finance, Operate and Transfer (DBFOT) (Toll) Basis (the "Project")," the company said in a release to the exchange.

The stock of IRB was up 2 per cent on the exchange.

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