IRB Infra SPV achieves financial closure worth Rs6,538 crore for Ganga Expressway; Stock sheds ~4%

16 Jun 2022 , 01:14 PM

Meerut Budaun Expressway Pvt. Ltd., an SPV and the Wholly-owned Subsidiary of IRB Infrastructure Developers Ltd. has achieved Financial Closure for the ambitious Ganga Expressway Group 1 Greenfield BOT project in the State of Uttar Pradesh.

The project is to Build, Operate and Transfer the six lane Greenfield Expressway corridor of 129.700 Kms (expandable to eight lanes) between Meerut and Budaun in Uttar Pradesh, with a cost outlay of Rs6,538 crore.

While commenting on the development, Virendra D. Mhaiskar, Chairman & Managing Director of the Company said, “This is the largest greenfield BOT project thus far in our portfolio. We are grateful to our Lenders for, again, showing high trust and confidence in our rich domain expertise and execution capabilities developed and demonstrated over last two decades.”

He added, “Company is mobilizing the resources to commence construction in full swing in next couple of months. With assurance of a World Class construction without any compromise on quality and safety, we will endeavour for timely completion of the project.”

With this, all the projects in the portfolio have been financially closed, which helps the Company in focusing on upcoming opportunities in the sector.

The highlights of the Project and Financial Closure:

• The financial closure is achieved at the Project Cost of Rs6,538 crore
• Consortium of Lenders extends financial support of Rs2,659 crore
• Project entails equity infusion of Rs2,133 crore by the Company and/ or its associate, i.e., IRB Infrastructure Trust.
• Project has Viability Gap Funding of Rs1,746 crore
• The project has concession period of 30 years (with provision of traffic linked extension of 6 years) including three years construction period.
• Company is set to start construction in full swing in next couple of months.

At around 1:17 PM, IRB Infrastructure Developers was trading at Rs205.25 per share down by Rs8.25 or 3.86% on the BSE.