Udaipur Tollway Pvt. Ltd., a Special Purpose Vehicle (SPV) of India’s largest Highways Infrastructure developers, IRB Infrastructure Developers Ltd., has successfully achieved Financial Closure for its Udaipur – Gujarat Border 6 LaningBOT project.
The SPV, in terms of the Concession Agreement executed with the National Highway Authority of India (NHAI), has tied up with the Consortium of lenders for project finance to the tune of Rs.1461 Cores.
While commenting on the development, Mr. Virendra D. Mhaiskar, Chairman & Managing Director said, “We thank the Consortium of lenders to continue to show trust in us and our Projects,and providing finance for this project. This demonstrates our strength, domain expertise and execution capacities.” He added, “Now having achieved financial closure on one out of the three NHAI Projects awarded last fiscal, the Company can bid competitively for upcoming NHAI projects.”
The highlights of the Project and Financial Closure:
- Project involves 6 Laning of NH-8 between Udaipur to Gujarat Border, 113.8 Kms length
- Concession Period: 21 Years including construction period of 910 days. Tolling commences from the Appointed Date
- Total cost of the project Rs. 2,088 Crore to be funded by equity contribution of Rs. 627 Crore by the Company, remaining to be funded by Project Finance of Rs. 1,461 Crore with average cost of approx.10.65% p.a.
- Project is financed by Consortium of Lenders led by Canara Bank. Other members include, Bank of India, Bank of Maharashtra, Oriental Bank of Commerce, Indian Overseas Bank, Andhra Bank and Aditya Birla Finance Ltd.
To re-iterate, IRB Infrastructure Developers Ltd. had bagged this project last year by offering the premium of Rs.163.80 Crores to NHAI.Now, having achieved Financial Closure, the SPV can commence construction soon.
IRB Infrastructure Developers Ltd. had bagged three projects in last fiscal; out of which, one achieved financial closure. Discussion with Lenders for financial closure on remaining two projects is in advance stage and the Company is hopeful to close them soon.
Achieving financial closure on this project will give an upper hand to Company for bidding upcoming NHAI projects.