IRB Infra Achieves Third Financial Closure Through Its SPV VK1 Expressway
IRB Infrastructure Developers Limited (IRB Infra) has achieved the third Financial Closure through its SPV, VK1 Expressway Private Limited, in a span of just 20 days for its third HAM project of Vadodara Kim expressway section of 23.40 Kms from Padra to Vadodara.
This has come after two successive financial closures for two HAM projects achieved at the end of September 2018 for its projects in South India.
Mr Virendra D. Mhaiskar, Chairman & Managing Director, while commenting on the development said, “To achieve financial closure for a project in the present scenario was a challenge for us. It’s a matter of pride for us that within a span of almost 20-21 days, we achieved financial closures for all three projects under the Hybrid Annuity Model. The lenders have once again shown high trust in our domain expertise, execution capabilities and financial discipline demonstrated over the last 20 years. We are highly obliged to be privileged with such high trust and confidence of lenders in us, even in the present lending environment.”
VK1 Expressway Private Limited is a Special Purpose Vehicle (SPV) of India’s leading and one of the largest Highways Infrastructure developers, IRB Infra, formed and entrusted to undertake the construction and management of Company’s third HAM project, viz., 8 laning of 23.40 Km section between Padra and Vadodara on Vadodara - Mumbai Expressway.
To re-iterate, IRB Infra had bagged three projects under Hybrid Annuity Model (HAM) in March 2018. Out of these three, the first two, i.e., Puducherry to Poondiyankuppam (38 Kms.) and Poondiyankuppam to Sattanathpuram (56.80 Kms) have achieved Financial Closure at the Bid Project Cost at the end of September 2018 on two consecutive days. With the third financial closure achieved, IRB Infra has financially closed all its HAM projects.
The highlights of the Project and Financial Closure:
1. The project involves 8 Laning of 23.40 Kms stretch between Padra and Vadodara on the Vadodara - Mumbai Expressway.
2. The project concession will be for 15 years and the tolling and construction will be commenced from the Appointed Date.
3. The project will be receiving the financial support of Rs. 817 Crores from NHAI and equity of Rs. 245 Crores from the Company and Project Financing of Rs. 981 Crores from the lenders.