ADB signs pact to invest USD 23 mn in NCD of GRIL

The ADB on Tuesday said it has signed an agreement to invest USD 23 million (about Rs 160 crore) in a debt instrument being issued by GRIL to help the company scale up construction of roads and highways in India through purchase of new building equipment.

The increased operational capacity will enhance GR Infraprojects Limited's (GRIL) ability to execute its existing order book and enable it to bid for more projects -- thereby supporting road sector investment plans of the Indian government, it said in a release.

"The Asian Development Bank (ADB) has signed an agreement to invest $23 million in non-convertible debentures being issued by GRIL to help the company rapidly scale up its construction of roads and highways in India through the purchase of new building equipment," the Manila-headquartered multi-lateral lending agency said.

The agreement was signed by Michael Barrow, Director General of ADB's Private Sector Operations Department and GRIL Chairman and Managing Director Vinod Kumar Agarwal here.

"Supporting the growth of transport sector is a key focus area of ADB's private sector strategy in India," Barrow said.

The long-term financing to GRIL will enable it to expand its execution capacity and allow it to bid for larger and more complex projects, he added.

Incorporated in 1995, GRIL is an engineering, procurement, and construction company in India, focused purely on the roads and highways sector. It currently has an order book of USD 2.78 billion, which is to be executed over the next three years.