IRB infra arm ties up Rs 1,400 cr for NHAI project

IRB Infrastructure Developers Ltd Tuesday said its subsidiary has tied up Rs 1,400 crore funds to execute a project awarded by National Highway Authority of India.

New Delhi: IRB Infrastructure Developers Ltd Tuesday said its subsidiary has tied up Rs 1,400 crore funds to execute a project awarded by National Highway Authority of India.

"Kaithal Tollway Pvt Ltd, a wholly-owned subsidiary of the company, has achieved financial closure in terms of the concession agreement executed with NHAI, by tying up of project finance of Rs 1,400 crore," IRB Infrastructure Developers Ltd said in a regulatory filing.

The project is financed by a consortium of eight lenders -- IDBI Bank, India Infrastructure Finance Company Ltd, IDFC Ltd, Indian Overseas Bank, Union Bank of India, Bank of Baroda, Canara Bank and Bank of Maharashtra, it said.

"The total cost of this project is Rs 2,290 crore, out of which Viability Gap Funding from NHAI will be Rs 234 crore, equity contribution by the company will be approximately Rs 656 crore and remaining will be funded through project finance of Rs 1,400 crore. The average cost of debt of this project finance is approx 11.75 percent per annum," it said.

The concession period for the project is 27 years, it added.

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