Reliance Infra arm completes refinancing of borrowings

Mumbai Metro One (MMOPL), a subsidiary of Reliance Infrastructure, has completed refinancing of project borrowings of Rs 1,650 crore.

With this refinancing, the final repayment of Rs 1,650 crore on the loans has been extended to the year 2037, almost 22 years from date, thereby enhancing financial flexibility for the company. The interest rate has also been reduced to 11.75 per cent per annum from 13 per cent and the average maturity period of loans has now almost doubled to 14 years, Reliance Infrastructure said.

MMOPL is Reliance Infrastructure’s special purpose vehicle (SPV) created to develop, implement and operate Mumbai’s first metro line, on a public-private partnership (PPP) model.

“The refinancing brings about greater alignment of the debt repayment profile with the life of the concession period and the company’s cash flows. We look forward to delivering increased value to the company's shareholders, and more comfort and convenience to metro commuters,” an MMOPL spokesperson said.