Adani to raise Rs 12k cr debt from SBI for Ganga Expressway
ROADS & HIGHWAYS

Adani to raise Rs 12k cr debt from SBI for Ganga Expressway

The Adani Group is in talks with the State Bank of India (SBI) to fundraise around Rs 12,000 crore in long-term project loans for developing the Ganga Expressway, connecting Meerut in the northwest of Uttar Pradesh to Prayagraj in the east.

In December, Adani Enterprises Limited (AEL) won contracts from the UP government to build three stretches of the 594 km long Ganga Expressway, while IRB Infrastructure bagged the fourth section. AEL’s share of work is 80% of the total project. The loan will be of longer maturity, between 10-30 years, but the terms are yet to be fixed.

The loan can be offered in high single-digits, between 7-9%. SBI can down-sell parts of the loan to other local banks.

The Ganga Expressway will be India’s longest expressway to be implemented on Design, Build, Finance, Operate and Transfer (DBFOT) basis.

SBI is conducting a survey on road traffic with the help of an external agency. This survey predicts the potential of road toll collections to help lenders decide on the debt-equity ratio. The higher potential of toll collections lowers the share of the equity. The ratio of debt-equity can be up to 80:20 if there are no parallel roads above the prospects of higher toll collections. The Ganga Expressway may have eight lanes and will be completed by 2024.

It would spread over 6,500 hectares of land. The estimated project cost against AEL’s three awards is Rs 17,000 crore. It caters to huge real estate business opportunities for Uttar Pradesh as the project covers many densely populated districts, including Hapur, Bulandshahar, Badaun and Raebareli.

Credit Analysis & Research Limited (CARE Ratings) rated Adani Enterprises A+ for its bank facilities, with financial flexibility and completion of substantial capex.

In the roads construction segment, AEL has 14 projects, including three large greenfield packages of the Ganga Expressway and the remaining of the projects Hybrid Annuity Model (HAM) projects.

Earlier, Navi Mumbai International Airport availed a long-term credit line from SBI for the greenfield project. The bank committed Rs 12,770 crore debt for the ambitious project.

Image Source

Also read: Ganga expressway to be built by IRB Infra and Adani Group

The Adani Group is in talks with the State Bank of India (SBI) to fundraise around Rs 12,000 crore in long-term project loans for developing the Ganga Expressway, connecting Meerut in the northwest of Uttar Pradesh to Prayagraj in the east. In December, Adani Enterprises Limited (AEL) won contracts from the UP government to build three stretches of the 594 km long Ganga Expressway, while IRB Infrastructure bagged the fourth section. AEL’s share of work is 80% of the total project. The loan will be of longer maturity, between 10-30 years, but the terms are yet to be fixed. The loan can be offered in high single-digits, between 7-9%. SBI can down-sell parts of the loan to other local banks. The Ganga Expressway will be India’s longest expressway to be implemented on Design, Build, Finance, Operate and Transfer (DBFOT) basis. SBI is conducting a survey on road traffic with the help of an external agency. This survey predicts the potential of road toll collections to help lenders decide on the debt-equity ratio. The higher potential of toll collections lowers the share of the equity. The ratio of debt-equity can be up to 80:20 if there are no parallel roads above the prospects of higher toll collections. The Ganga Expressway may have eight lanes and will be completed by 2024. It would spread over 6,500 hectares of land. The estimated project cost against AEL’s three awards is Rs 17,000 crore. It caters to huge real estate business opportunities for Uttar Pradesh as the project covers many densely populated districts, including Hapur, Bulandshahar, Badaun and Raebareli. Credit Analysis & Research Limited (CARE Ratings) rated Adani Enterprises A+ for its bank facilities, with financial flexibility and completion of substantial capex. In the roads construction segment, AEL has 14 projects, including three large greenfield packages of the Ganga Expressway and the remaining of the projects Hybrid Annuity Model (HAM) projects. Earlier, Navi Mumbai International Airport availed a long-term credit line from SBI for the greenfield project. The bank committed Rs 12,770 crore debt for the ambitious project. Image Source Also read: Ganga expressway to be built by IRB Infra and Adani Group

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