IRB Infra achieves Rs 6,610 cr financial closure for Mumbai-Pune Expressway project

IRB Infrastructure Developers on Thursday said it has achieved the Rs 6,610 crore financial closure for its first and India's largest TOT (toll-operate-transfer) project 'Mumbai Pune Expressway'.

The company said the single largest debt tie-up in Indian roads and highways sector for Rs 6,610 crore was closed in stipulated time amidst coronavirus pandemic.

"IRB MP Expressway Pvt Ltd, a special purpose vehicle (SPV) of India's leading and largest highways infrastructure developer, IRB Infrastructure Developers Ltd, has successfully achieved financial closure for its first and India's largest TOT project – Mumbai Pune Expressway," the company said in a statement.

As a commitment towards the fee obligations in concession agreement, the company on Thursday made the payment of first tranche of Rs 6,500 crore as upfront sub-concession fee to the Maharashtra State Road Development Corporation, it said.

Virendra D Mhaiskar, chairman and managing director said, “Achieving financial closure, amounting to a whopping Rs 6,610 crore debt for India’s largest road TOT project, in these difficult times was a massive ordeal – especially with more than half the stipulated time being tied away in lockdown."

This feat validates lenders' trust in project’s merits, company’s financial track record and credit worthiness, as also its domain expertise and execution capabilities in developing and managing large highway infrastructure, he said.

The project length is 205.4 km including expressway and section of NH-48, old Mumbai Pune corridor.

After having managed the concession for 15 years until August 2019, IRB Infra won this concession again in February 2020 for subsequent 10 years and 2 months.

This is India’s single largest concession under the TOT model for tolling and O&M, which commenced from March 1, 2020.

"Total sub-concession fee amounts to Rs 8,262 crore, of which IRB Infra has paid MSRDC the upfront fee of Rs 6,500 crore. Further staggered payments of Rs 850 crore in year 2, Rs 850 crore in year 3 and Rs 62 crore in year 4 have been tied and will be made as per the concession guidelines," the company said.

It said the IRB has infused the entire project equity of Rs 1,438 crore upfront and with this project, IRB’s asset base grows beyond Rs 45,000 crore – the largest in Industry, it said.