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Construction : Web Exclusive | November 2017 | Source : CW-India

IRB Infra’s SPV achieves financial closure for six-laning of Chittorgarh-Gulabpura Bypass on NH-79

  • Ties up finances for Rs 1,400 crore at the cost of 10.25 per cent per annum.
  • Consortium of lenders led by State Bank of India to finance the project.
  • Sponsor’s contribution including internal accruals of Rs 690 crore.

CG Tollway, a Special Purpose Vehicle (SPV) of IRB Infrastructure Developers has successfully achieved financial closure for its BOT project of six-laning of NH-79 of the Chittorgarh-Gulabpura Bypass.

The SPV, basis the Concession Agreement signed and executed with National Highway Authority of India (NHAI) for this Rs 2,090 crore 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.

Commenting on the development, Virendra D. Mhaiskar, Chairman & Managing Director, says, “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 adds, “Achieving financial closure for this project will give an upper hand to the company for bidding upcoming NHAI projects.”

The highlights of the project and financial closure:

  • Project involves six-laning of 124.87 km bypass on NH-79 between Chittorgarh and Gulabpura in 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 2,090 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 crore at an average cost of approximately 10.25 per cent per annum.
  • IRB Infrastructure Developers had bagged three projects in the last fiscal, of which, the Udaipur-Gujarat border project 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 the next stage soon.
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