IRB Infra Raises Rs 6,600 Crore Funds
IRB Infrastructure is raising a loan of Rs 6,600 crore from the State Bank of India (SBI) and Union Bank of India in the largest debt tie-up for a single project. In February, IRB got the tender for Mumbai-Pune expressway project under the toll-operate-toll (TOT) model. IRB is required to pay Rs 8,262 crore in multiple tranches to Maharashtra Agency for acquiring the toll collection rights for the next 10 years. IRB is using the credit line to pay a Maharashtra agency for the toll collection rights on the Mumbai-Pune expressway project. Bajaj Consultants is the sole financial advisor for the debt syndication. The loan would be of a nine-year tenor at 8-8.5%, deemed to be finely priced taking into account the economic uncertainties. Out of the Rs 6,600 crore debt syndication, SBI will likely lend about three-fourths. This is said to be the largest ever debt tie-up on a single road project in the country, reflecting lenders’ appetite for financing creditworthy projects that have defined cash flow.
Tags : ALLIED