Mumbai, October 16, 2017: CG Tollway Pvt. Ltd., a Special Purpose Vehicle (SPV) of India’s leading and one of the largest Highways Infrastructure developers, IRB Infrastructure Developers Ltd., has successfully achieved Financial Closure for its another BOT project of 6 laning of NH-79, Chittorgarh – Gulabpura Bypass.
The SPV, basis the Concession Agreement signed and executed with National Highway Authority of India (NHAI) for this Rs.2090 Crores project, has tied up with the Consortium of lenders led by State Bank of India. Other members include Bank of India, Bank of Maharashtra, Canara Bank, Indian Overseas Bank, Andhra Bank and Aditya Birla Finance Ltd.
While commenting on the development, Mr. Virendra D. Mhaiskar, Chairman & Managing Director said, “Achieving financial closures for two projects successively within a short span of few months validates lenders’ trust in credentials of the project, our domain expertise and execution capabilities in developing large highway infrastructure, well demonstrated over almost a decade and half. We are grateful to our lenders for the trust shown and financing the project.” He further added, “Achieving financial closure for this project will give an upper hand to Company for bidding upcoming NHAI projects.”
The highlights of the Project and Financial Closure:
· Project involves 6 Laning of 124.87 Km bypass on NH-79 between Chittorgarh and Gulabpura in the State of Rajasthan.
· NH 79 connects Ajmer to Ghat Bilod, traversing through major settlement stretches such as Nasirabad, Gulabpura, Bhilwara, Chittorgarh, Mangalwara and finally Udaipur
· Concession Period: 20 Years including construction period of 910 days. Tolling commences from the Appointed Date
· Total cost of the project Rs. 2090 Crores. Project entails a annual premium payment of Rs.228.60 Crores to NHAI. Premium payment triggers post three years from the appointed date. Thus there is no payment outgo on account of premium in the initial three years.
· Company is to infuse Sponsor contribution including internal accruals of Rs. 690 Crores towards its contribution in funding the project. Balance funding through the project finance of Rs. 1,400 Crores at an average cost of approx. 10.25 % p.a.
To re-iterate, IRB Infrastructure Developers Ltd. had bagged three projects in last fiscal; of which, Udaipur-Gujarat border has commenced construction (and tolling), Chittorgarh-Gulabpura has achieved Financial Closure and Kishangarh-Gulabpura is at advanced level of discussions for Financial Closure. The projects are shaping up as expected and should move to next stage soon.