Bankers to lend Rs 8.3 bn for Rs 11 bn road project

A consortium of bankers agreed to provide Rs 830 crore syndicated loan to Hospet-Chitradurga Tollways (HCTL) for the Rs 1,102.81-crore road project in Karnataka.

HCTL is a special purpose vehicle (SPV) formed to undertake the Hospet-Chitradurga road project by Ramky Infrastructure, the flagship firm of Ramky Group.

The consortium of bankers comprises Axis Bank, IDBI Bank, Bank of India, IIFCL, State Bank of Hyderabad, State Bank of Patiala, State Bank of Travancore, Central Bank of India and Oriental Bank of Commerce, Ramky Infrastructure said in a statement.

YR Nagaraja, Managing Director of Ramky Infra said the successful financial tie-up for the road project was a reflection of the trust the market has placed in the company.

The company was awarded Rs 1,102.81-crore project by NHAI in January this year for four-laning of Hospet-Chitradurga section of NH 13 under National Highways Development Project (NHDP) on design, build, finance, operate and transfer basis in build, operate, transfer (BOT) toll mode.

The project has a concession period of 25 years including construction period of 910 days. The company has formed a SPV to undertake the project.