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IRB Infrastructure Developers Ltd has informed Bombay Stock Exchange (BSE) that AE Tollway Pvt. Ltd. its wholly-owned subsidiary, has achieved financial closure for the Six Laning of Agra - Etawah Bypass section of NH-2 PPP project.

As we reported in September 2015, IRB Infrastructure was awarded by National Highways Authority of India (NHAI) with the contract for the development of the PPP road project. The contract was signed in September 2015.

The total cost of this project is INR26.5 billion, out of which equity contribution by the company will be INR8.73 billion (US$129 million) and remaining will be funded through Project finance of INR16.50 billion (US$243.5 million). The average cost of debt of this Project finance is approx. 11.25% per year.

A consortium of lenders comprising of IDBI Bank Limited - Lead Institution, India Infrastructure Finance Company Ltd. (IIFCL), Bank of India, Bank of Maharashtra, UCO Bank, Andhra Bank and Punjab National Bank have financed this project.

The project is part of the National Highways Development Project (NHDP) Phase-V. NH-2 connects the important industrial towns of Agra, Firozabad, Mainpuri, Etawah and other towns in the South-Western part of Uttar Pradesh. The project is located in the regions of Agra and Etawah and the total length of the road will be approximately 124.52 km (NH-2 from km 199.660 to km 323.525).

The road PPP project will be developed in build - operation - transfer (BOT - Toll) mode on a design, build, finance, operation and maintenance (DBFOM) basis. The contract will have a period of 24 years.