IRB Infrastructure Developers has achieved financial closure for its Surat-Dahisar six-lane road project, firming up Rs.1,956 core debt and Rs.544 crore of equity. The balance Rs.335 crore will be sourced through internal accruals.

The project has a debt-equity ratio of 70:30 and the total cost of the project is estimated at Rs.2,835 crore. Deutsche Bank has picked up a 10 per cent stake in the project, while IRB Infrastructure holds the remaining 90 per cent.

IRB has raised Rs.1,956 crore from Canara Bank, Indian Overseas Bank, Bank of India, Bank of Baroda, Union Bank, Indian Bank and Andhra Bank. As per the agreement with the National Highway Authority of India (NHAI), IRB has a 12-year concession period for the project and 38 per cent of the revenue will be shared with NHAI in the first year.

Also See:

IRB defers financial closure for Surat project (04-Dec-08)

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