IRB Infra achieves financial closure for Rajasthan project

CG Tollway Pvt Ltd, a Special Purpose Vehicle (SPV) of road developer IRB Infrastructure Developers Ltd has achieved financial closure for its BOT project of six-laning of 124.87 km bypass on NH-79 between Chittorgarh and Gulabpura in Rajasthan. The project was awarded by the National Highway Authority of India (NHAI).

The SPV has tied up with the consortium of lenders led by State Bank of India. Other lenders for the project include Bank of India, Bank of Maharashtra, Canara Bank, Indian Overseas Bank, Andhra Bank and Aditya Birla Finance Ltd. Banks will fund Rs 1,400 crore of the total project cost of Rs 2,090 crore at an average interest cost of around 10.25 per cent per annum, the company said in a statement.

IRB Infra will infuse sponsor contribution, including internal accruals of Rs. 690 crore, towards its contribution in funding the project. According to the Build-Operate-Transfer (BOT) annuity model, the project entails a annual premium payment of Rs. 228 crore to NHAI, payment of which will start after three years from the appointed date.

“Achieving financial closure for this project will give an upper hand to the company for bidding upcoming NHAI projects,” Virendra D. Mhaiskar, Chairman & Managing Director of IRB Infrastructure, said.

Another package (90-km Kishangarh-Gulabpura) in the same road stretch bagged by IRB Infrastructure last year is currently at an advanced level of discussions for financial closure, the company said.

IRB Infrastructure's construction order book stood at Rs.8,900 crore as on 30th June 2017. Earlier this year, IRB Infrastructure emerged as the first road developer in India to launch an Infrastructure Investment Trust (InvIT).