IRB Infrastructure Developers recently declared that it’s fully-owned subsidiary, Kishangarh Gulabpura Tollway, has achieved a financial closure for Rs 1,562 crore. The closure for the project has been achieved with regard to the concession agreement with the National Highway Authority of India (NHAI). It has been tied up by an amount of Rs 1,020 crore. The remaining Rs 506 crore will be given through equity contribution or internal accrual by the company.
KG Tollway Pvt Ltd, is a Special Purpose Vehicle (SPV) BOT (build, operate, transfer) project. It incorporates six-laning of the road from Kishangarh to Gulabpura section of NH 79A and NH 79 in Rajasthan. The total length of the road is 90 km. The project has been signed with a concession period of 20 years, and includes a construction period of 910 days.
While speaking to the Financial Express, an IRB infrastructure spokesperson said, “Rs 1,020 crore has been tied up at 10.20 per cent per annum. The State Bank of India, along with the Bank of Maharashtra, Yes Bank Limited, and IFCI Limited are amongst the consortium of lenders. The remaining Rs 506 crore will be given through equity by IRB infrastructure.”
Commenting on the development, Virendra Mhaiskar, the Chairman and MD of IRB Infrastructure said, “This is the third closure in the fiscal year 2018. The number of projects validates the lender’s trust in IRB’s expertise showcased in the last 20 years. We thank our lenders for the trust they have shown by financing the project.”
The project involves an annual premium payment of Rs 186.30 crore to NHAI. IRB Infra mentioned that this payment would initiate three years from the date of appointment. The company also stated that out of the three projects acquired in Rajasthan, Udaipur-Gujarat border project and Chittorgarh-Gulabpura project are in the construction and tolling phase as of now.
About the IRB Infrastructure Developers Ltd :
Conceived in the year 1998, IRB Infrastructure Developers Ltd. is one of India’s leading infrastructure development company in the build, operate, transfer (BOT) space. The company is devoted to the roads and highway sector. It has till now, delivered multiple large, technically challenging projects across India. IRB Infra envisions becoming India’s largest, trustworthy and most respected, stakeholder friendly organization, committed to developing safe and world-class highways for the nation. The company is also in the process of listing the country’s first Infrastructure Investment Trust. This will help the organization in opening more pathways for an additional investment into infrastructure projects.