IRB Infra to refinance Rs5,000 cr projects

IRB Infrastructure is looking to refinance road projects worth Rs5,000 crore this year.
It is seeking to refinance Talegaon-Amravati and Jaipur-Tonk- Delhi projects, where debt is around Rs2,000 crore.

It is also looking to refinance Surat-Dahisar project where debt stands at Rs1,400 crore, and Amritsar-Pathankot and Tumkur-Chitradurg projects (cumulative Rs1,800 crore). 

Virendra Mhaiskar, CMD, told DNA “We have reduced our interest costs 150 basis points through refinancing of two projects and expect similar saving on projects that may get refinance.” After refinance, the interest costs on Mumbai-Pune (debt of Rs1,000 crore) and Bharuch-Surat (Rs 800 crore) projects  came down to 10.6% from 12%.

IRB bagged Mumbai-Pune project by upfront payment of Rs918 crore in 2004. Under the project, IRB did the four-laning of existing 100 km two-lane road on NH-4, while it also did certain value addition on 96-km long Mumbai-Pune expressway. On refinancing of debt, Mhaiskar said the firm is not seeking to alter repayment terms but is only looking to reduce the debt cost.
Mhaiskar said the average cost of funding for IRB currently stood at 11.25%.

IRB’s current order book is around Rs9,100 crore, out of which Rs7,100 crore is to be executed in the next three years. IRB reported 9% year-on-year rise in net profit at Rs143 crore for the December quarter on 22% increase in total income at Rs947 crore.