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Construction : Web Exclusive | February 2018 | Source : CW-India

IRB Infra’s SPV achieves financial closure for six-laning of 90 km on Kishangarh-Gulabpura stretch of NH-79

  • Ties up finances for Rs 1,020 crore at 10.20% pa from consortium of lenders led by SBI
  • Company to commence construction and tolling soon

KG Tollway, a Special Purpose Vehicle (SPV) of IRB Infrastructure Developers, has successfully achieved financial closure for its Rs 1,526 crore BOT project of six-laning of NH-79, Kishangarh-Gulabpura stretch.
Rs 1,020 crore has been tied up at a cost of 10.20 per cent per annum, with consortium of lenders led by State Bank of India (SBI), along with Yes Bank, Bank of Maharashtra and IFCI. IRB Infra will support the balance funding of Rs 506 crore through equity in the project.   

Virendra D Mhaiskar, Chairman & Managing Director, IRB Infrastructure Developers, while commenting on the development said, “This is the third consecutive financial closure in FY2018. It validates lenders’ trust in project merits and IRB’s domain expertise and execution capabilities demonstrated over last 20 years. We are grateful to our lenders for the trust shown and financing the project.”
Highlights of the project and financial closure:
  • Project involves six-laning of 90 km stretch on NH-79 between Kishangarh 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.
  • The project concession will be for 20 years and the tolling and construction will be commenced from the Appointed Date.
  • Project entails annual premium payment of Rs 186 30 crore to NHAI; payment of which would commence after three years from the appointed date. Thus, there is no payment outgo on account of premium in the initial three years. 
Out of the three projects bagged in Rajasthan, the construction and tolling has been started on Udaipur-Gujarat border project as well as Chittorgarh-Gulabpura project. With Kishangarh-Gulabpura project achieving financial closure as well, the company will shortly start construction as well as tolling activity from the Appointed Date.

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