HCC Group has inked an agreement with Cube Highways to sell Baharampore-Farakka Highways (BFHL) at an enterprise value of Rs 1,279 crore. The highway is a 101 km long NH-12 highway in West Bengal connects Kolkata and the Haldia port.
HCC Group has signed binding terms with Cube Highways and Infrastructure V for 100 percent sale of BFHL at Rs 1,279 crore. HCON will be entitled to a material revenue share for the life of the concession.
The company will be securitising part of these future BFHL receivables through a loan of up to Rs 300 crore, resulting in total liquidity to the group of up to Rs 900 crore.
Baharampore-Farakka Highways is a special purpose vehicle (SPV) of HCON which was incorporated in 2010, for design, build, finance, operate, and transfer (DBFOT) toll of the four-lane highway between Baharampore and Farakka section of NH-12 (earlier NH-34).
NHAI has granted a concession period of 25 years (extending to 30 years) to the company and BFHL commenced toll operations on 14 May 2014.