Six banks fund Rs 1,194 cr debt for Mumbai metro project

AGENCIES
Posted on 2008-10-04
MUMBAI- At least six banks led by leading lender IDBI Bank have funded the Rs 1,194-crore debt part for the proposed Mumbai metro project along Versova-Andheri- Ghatkopar corridor, bankers said on Friday.
Mumbai Metro One Pvt Ltd, the special purpose vehicle (SPV) formed to execute the Rs 2,356-crore project, today signed the loan agreements with the bank consortium, its director, Mr K P Maheshwari said.
“Achieving the financial closure is a milestone for the project. We have obtained the financing on the most competitive and innovative terms,” Mr Maheshawri said.
IDBI Bank has contributed Rs 300 crore for the project while IIFCL UK has pumped in $ 70 million (around Rs 287 crore) foreign currency debt for the project.
Other banks, which have participated in the consortium, include Canara Bank, Oriental Bank of Commerce, Indian Bank, Karur Vysya Bank and Corporation Bank.
“We have given a loan of Rs 300 crore to finance the Mumbai Metro project while the rest will be funded by other banks in the syndication,” IDBI Bank’s chief financial officer, Mr R K Bansal said.
Apart from the debt, the project has an equity capital of Rs 512 crore and has also received Rs 650 crore Viability Gap Funding (VGF), taking the total project capital to Rs 2,356 crore.
The SPV will have to pay an interest of 12.25 per cent for the rupee loan and 3.5 per cent above the libor for the foreign currency debt.
The project, which is likely to be completed by July 2010, is expected to bring relief to the traffic woes of the metropolis.
Mumbai Metro One is a joint venture between Reliance Energy, French firm Veolia Transport and Mumbai Metropolitan Region Development Authority.