Sadbhav Infrastructure Project, the recently listed arm of Sadbhav Engineering, has completed the refinancing of existing rupee debt of it's Hyderabad-Yadgiri road project with new debt taken from other lenders with revised terms and conditions.
Sadbhav Infrastructure Project, the recently listed arm of Sadbhav Engineering, has completed the refinancing of existing rupee debt of it’s Hyderabad-Yadgiri road project with new debt taken from other lenders with revised terms and conditions.
In a BSE announcement, on Monday, the company said re-financing will result in reduction in the interest rates from the current level, extension of the repayment pattern covering the majority balance concession period, tie-up for the first major maintenance expenses, issuances of non-convertible debentures/bonds to infrastructure debt funds and re-financing of existing ECB facilities. The above benefits will be subject to approvals from the concerned authorities like National Highways Authority of India and Reserve Bank of India.
FE reported in September, that Sadbhav Infrastructure is looking to re-finance four of its operating road projects, and Hyderabad-Yadgiri was one of them.
The company did not share the specifics of refinancing of the project. However, the interest rates on four projects to be re-financed—Aurangabad-Jalna (AJTL), Bijapur-Hungund (BHTPL), Dhule-Palasner (DPTL) and Hyderabad-Yadgiri (HYTPL), ranges from 11.25%-11.50%, which the company expects to come down to 10.10%-10.30%, after refinancing. This would result in a saving of close to R50 crore on interest payment on an annual basis.
Hyderabad Yadgiri Tollway was incorporated in 2010 to augment the then existing road from 18.6 kilometre to 54 kilometre (34 kilometres) on the Hyderabad to Yadgiri section of NH-202 in Telangana on DBFOT basis. The original concession period of the project is 23 years and it has been operational since 2012.
Toll revenue for the nine month period ended December 31, 2015 for Hyderabad-Yadgiri was R39.24 crore. The total rupee debt outstanding as on March 31, 2016 stands at R231.98 crore and total ECB outstanding is at $24.304 million. Total equity (including sub-ordinate debt from promoters) stands at nearly R147 crore.