Companies

IRB MP achieves financial closure for the Mumbai Pune Expressway

Our Bureau Mumbai | Updated on June 18, 2020 Published on June 18, 2020

IRB MP Expressway Pvt Ltd, a special purpose vehicle (SPV) of highways infrastructure developer IRB Infrastructure Developers, has successfully achieved financial closure for the Mumbai Pune Expressway.

As a commitment towards the fee obligations in the concession agreement, IRB has made the payment of the first tranche of ₹6,500 crore as upfront sub-concession fee to the Maharashtra State Road Development Corporation, the company said in a statement.

Virendra D Mhaiskar, Chairman & Managing Director said, “Achieving financial closure, amounting to a whopping ₹6,610-crore debt for India’s largest road Toll Operate Transfer (TOT) project, in these difficult times was a massive ordeal, especially with more than half the stipulated time being tied away in lockdown. This feat validates lenders’ trust in project’s merits, IRB’s financial track record and credit worthiness; as also our domain expertise and execution capabilities in developing and managing large highway infrastructure.”

The project involves 205.4 km, including Pune Expressway, covering 205.4 km and a Section of NH-48, old Mumbai-Pune corridor. After having managed the concession for 15 years until August 2019, IRB Infra won this again in February 2020 for the subsequent 10 years and two months.

The total sub-concession fee amounts to ₹8,262 crore, of which IRB Infra has paid MSRDC the upfront fee of ₹6,500 crore. Further, staggered payments of ₹850 crore will be made in the second year, ₹850 crore in the third and ₹62 crore in the fourth have been tied and will be made as per the concession guidelines, the company said.

Published on June 18, 2020
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