BMRCL to issue Rs 3 bn worth bonds

In order to fund the first phase of the metro rail project, the Bangalore Metro Rail Corporation (BMRCL) plans to issue Rs 300 crore worth of secured non-convertible and taxable bond in July. BMRCL, the special purpose vehicle created for implementing the metro rail project, would raise the amount through private placement of the bond. Phase 1 of the project consists of the construction of a 42.3-km corridor at an estimated cost of Rs 11,609 crore. The BMRCL had completed and has commissioned the first reach spanning 7 km between Baiyappanahalli and M G Road in October 2011. It is now undertaking a trial run on the third reach spanning 5.3 km between Peenya and Yashwantpur. BMRCL already received financial assistance from the Japan International Co-operation Agency (JICA) and France-based Agence Française de Developement (AFD) for the project. AFD, a public development finance institution, agreed to provide Euro 110 million (about Rs 787 crore) to BMRCL some months ago. BMRCL also received up to $250 million (Rs 1,372 crore) loan from the Asian Development Bank (ADB) in April 2011, while Hudco sanctioned a loan of Rs 700 crore to the Namma Metro project in October 2011. Indian Infrastructure and Finance Company (IIFCL) is also contributing to the funding of the project.