IRB Infra’s SPV Achieves Financial Closure for its Project of 6 Laning

IRBKG Tollway Pvt. Ltd., a Special Purpose Vehicle (SPV) of India’s leading and one of the largest Highways Infrastructure developers, IRB Infrastructure Developers Ltd., has successfully achieved Financial Closure for its Rs.1,526 Crores BOT project of 6 laning of NH-79, Kishangarh – Gulabpura stretch.

Rs 1,020 crores have been tied up at a cost of 10.20% p.a., with consortium of lenders led by State Bank of India, along with Yes Bank Limited, Bank of Maharashtra and IFCI Limited. IRB Infra will support the balance funding of Rs.506 Crores through equity in the project.

Virendra D. Mhaiskar, Chairman & Managing Director, while commenting on the development said, “This is the third consecutive financial closure in FY18. 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.”

The highlights of the Project and Financial Closure:

  • Project involves 6 Laning of 90 Kms 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 Crores 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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