GMR Jadcherla Expressway to raise Rs 360cr through infra bonds
Hyderabad: GMR Jadcherla Expressway, a special purpose vehicle of GMR Group, is all set to launch long-term infrastructure bonds in association with India Infrastructure Finance Company Limited (IIFCL).
According to S K Goel, chairman and managing director IIFCL, the bonds aimed at raising Rs 360 crore are partially guaranteed by the lender.
"For this Rs 360 crore, we counter guarantee 30 per cent to raise the rating of the bond to AA so that pension funds and insurance companies can safely invest. I hope the bonds will hit the market by end of May," Goel told reporters here.
The GMRJE project involved strengthening and improvement of a two lane stretch to four-lane between Shivrampalli / Faruknagar and Jadcherla on NH - 7 in State of Andhra Pradesh.
He said the GMRJE project is one of the four pilot projects taken up, and the Government gave permission to credit enhancement scheme to the extent of Rs 2,000 crore.
Through credit enhancement, a lender is provided with reassurance that a borrower will honour the obligation through additional collateral or third party guarantee.
The funds raised by through bonds will be used to repay loans taken to complete the project there by creating headroom for the project developer in the financial institution, he added.
IIFCL is expected to launch regular bonds under credit enhancement by September, Goel added.