GMR to tie up funds for road next month

GMR Infrastructure is hoping to tie up funds for its newest highway project by the end of next month, said an official from the firm.
The Rs 1,700 crore, 99 km national highway runs between Hungund and Hospet in Karnataka.

GMR bagged the National Highways Authority of India (NHAI) project in February along with New Delhi-based Oriental Structural Engineers.

They hold 51% and 49%, respectively in the build-operate-transfer (BOT)-toll project that has a concession period of 20 years.
The official said the concession agreement was signed on March 21 and the financial closure was underway.

“We should do it by June-end,” he said, requesting anonymity.
The project would have a debt-equity ratio of 70:30.

“We are looking to raise funds at 10.5-11%,” he said, adding the equity component would be funded through internal accruals.
GMR, one of the largest highway developers in the country, has six operational highways totalling 421 km. Three are toll-based and rest are on annuity.

Three more are in the development stage, including the Hungund-Hospet road.

The company tied up funds for the Rs 2,190 crore

Hyderabad-Vijayawada project in February. It has sent the NHAI the draft documents and sanction letter and is awaiting the apex body’s response.

IDBI has underwritten the Rs 1,700 crore loan for the project.
GMR is also close to completing the fund tie-up for the Rs 1,200 crore highway outside Chennai, for which ICICI Bank is underwriting the loan.

DNA reported on the development in February.