Jorabat Shillong Expressway Ltd, a joint venture between IL&FS Transportation Networks Ltd (ITNL) and Ramky Infrastructure Ltd, plans to raise around Rs890 crore through bonds, in a bid to refinance existing debt at a lower cost, according to three people aware of the matter.
The company is in talks with merchant bankers to issue bonds maturing in January 2031.
“The company has received strong investor interest at very competitive rates and it expects to complete the placement of bonds by November 2017. Once issued, the bonds would help the company achieve substantial savings in interest cost in the special purpose vehicle (SPV),” said Krishna Gagh, company secretary of ITNL.
Gagh did not comment on the amount of the proposed bond issue, stating that the final terms are yet to be decided.
The road project includes four-laning of Jorabat-Shillong section of NH-40 in the state of Assam and Meghalaya on design, build, finance, operate and transfer pattern under the Special Accelerated Road Development Programme in North-East SARDP-NE, according to information available on ITNL’s website. The scheduled projection completion date was January 2014. Read More…
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