IRB Infra gains as project with NHAI achieves financial closure

IRB Infrastructure Developers rose 1.73 % to Rs 252.60 at 12:15 IST on BSE after the company said it achieved financial closure in terms of the Concession Agreement executed with NHAI.

The announcement was made after market hours on Monday, 1 September 2014.

Meanwhile, the S&P BSE Sensex was up 127.06 points or 0.38% at 26,970.48.

On BSE, so far 2.85 lakh shares were traded in the counter, compared with an average volume of 5.19 lakh shares in the past two weeks.

The stock hit a high of Rs 254.65 and a low of Rs 247.35 so far during the day.

Solapur Yedeshi Tollway, its wholly-owned subsidiary of the company, achieved financial closure in terms of the Concession Agreement executed with National Highway Authority of India (NHAI) by tying up of project finance of Rs 910 crore.

The total cost of this project is Rs 1492 crore, out of which viability gap funding from NHAI is Rs 189 crore, equity contribution by the company will be approx. Rs 393 crore and remaining will be funded through Project finance of Rs 910 crore. The average cost of this project finance is approx. 11.75% per annum (p.a.).

A consortium of lenders comprising of IDBI Bank - Lead Institution, India Infrastructure Finance Company (IIFCL), Canara Bank, Union Bank of India, Corporation Bank and Indian Overseas Bank have financed this project.

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