Metro to raise Rs 500 crore debt

Metro to raise Rs 500 crore debt

The Bangalore Metro Rail Corporation Limited (BMRCL) plans to raise Rs 500 crore debt through non-tax-free bonds and non-convertible debentures, later this quarter.
It would be the first ‘Metro Bond Issue’ in the country.

A senior official of the Corporation said the bonds would be issued to institutions and used to service or repay the BMRCL’s debts.

The Corporation is currently executing Phase 1 of the Metro project covering a distance of 42.3 km at an estimated cost of Rs 11,609 crore.

Loans extended

Japan International Corporation Agency and Agency, Francaise de Development of France have extended loans worth ¥54.536 billion and €110 million, respectively.

“India Ratings has rated the bonds ‘IND AA’, notch above the State rating.

“It derives comfort from the MoU between the Government of India, Government of Karnataka and BMRCL,” a press release from BMRCL said, adding the rating also derived strength from the shadow cash support mechanism from the State government and explicit support from the Central government.