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Reliance Infrastructure SPV raises Rs 2,500 cr for Delhi metro link

23 Mar 2009 Evaluate

Delhi Airport Metro Express, a special-purpose vehicle floated by Reliance Infrastructure for building the airport metro express line connecting the heart of the capital with the international airport, has managed to raise Rs 2,500 crore as part funding for the project, according to sources.

The company has raised a debt of Rs 2,500 crore against a total debt requirement of Rs 2,020 crore, which includes a dollar component of 55 million. The 23-km project is expected to cost Rs 2,885 crore with a debt to equity ratio of 70:30. The upcoming metro line is scheduled to be commissioned in 2010 ahead of the Commonwealth Games. The average interest rate for the loan is estimated to be 2.5% below the PLR. At the current PLR, the interest rate works out to 13%.

The Reliance Infrastructure-CAF consortium is implementing the metro-link project on a build-own-operate-transfer basis. Reliance holds 95% stake in the metro project with its technical partner from Spain, CAF, owning the remaining equity. The consortium bagged the project from the Delhi Metro Rail Corporation (DMRC) in August last year.crackcrack

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