Ashoka Buildcon’s subsidiary Ashoka Concessions has received a tranche of investment of Rs 110 crore from SBI-Maquarie which will be utilized for equity investment into various under construction projects. With this, the total equity investment by SBI-Macquarie in Ashoka Concessions stands at Rs 490 crore, the balance of which would be received as per equity requirements of projects under construction.
In a separate development, the company’s associate company viz. Jaora-Nayagaon Toll Road Company (JNRL), has been sanctioned re-finance aggregating Rs 613 crore by ICICI Bank, which replaces existing project loan of Rs 540 crore. This re-finance will help JNRL to reduce interest cost as the rate has been reduced by 90 bps. Additionally, the proceeds will be used for repayment of creditors of JNRL.
Jaora-Nayagaon is the Special Purpose Vehicle incorporated for the Project, viz, Design, Construction, Finance, Strengthening, Widening, Operation and Maintenance on BOT basis for the Four Laning of Jaora Nayagaon section in the State of Madhya Pradesh. The project, which is on DBFOT (toll) basis, has a concession period of 25 years including the construction period.
