GMR Infrastructure road project on NH7 achieves financial closure

GMR Infrastructure Ltd has announced that the "Adloor Yellareddy - Pochanpalli" road project on NH-7 in the state of Andhra Pradesh, which is being executed by the Company’s subsidiary GMR Pochanpalli Expressways Pvt Ltd, has achieved the financial closure on September 25, 2006.

The Salient features of the financial closure are as follows:

The capital cost of the project totaling Rs 690 crore was met by way of equity and debt. The debt component of Rs 552 crore, syndicated by ICICI Bank Ltd, has been tied up with bankers namely the Andhra Bank, Bank of India, Bank of Baroda, Central Bank of India, SIDBI, Punjab National Bank, United Bank of India, Vijaya Bank and ICICI Bank, while the equity component is Rs 138 crores.

The project has a debt-equity-ratio of 4:1.

Though the total term debt requirement for the project was Rs 552 crore the consortium received excess sanction of Rs 780 crore from the participating banks.

The tenure for repayment of loan is fifteen and a half years.

Source : Equity Bulls

Keywords