IRB Infra Trust completes refinancing of 5 BOT projects for Rs. 6,400 crore

IRB Infrastructure Trust, the private Infrastructure Investment Trust (InvIT) under IRB, has achieved the successful refinancing of five Build-Operate-Transfer (BOT) projects, collectively valued at approximately Rs. 6,400 crore, spanning across three Indian states.

Of these five BOT projects, two are located in Maharashtra, two in Uttar Pradesh, and one in Rajasthan. The completion of this refinancing exercise marks a significant milestone for IRB Infrastructure Trust, and according to an official statement by IRB, "The new interest rate will be 8.6 per cent against the earlier 9.7 per cent, resulting in a substantial saving of Rs. 1,000 crore for the company over the next five years."

Virendra D Mhaiskar, Chairman and Managing Director of IRB Infrastructure Developers Ltd, expressed his satisfaction with the accomplishment, stating, "Five of the operational BOT Assets under our private InvIT have successfully completed the refinancing exercise, with debt moving to the InvIT level. This will not only bring down our interest cost, reduce the amortization in the initial years but also improve the tax efficiency of the portfolio."

IRB Infrastructure Developers Ltd. (IRB) holds the distinction of being India's pioneering integrated multinational transport infrastructure developer in the roads and highways sector. As the largest integrated private toll roads and highways infrastructure developer in India, IRB boasts an impressive asset base exceeding Rs. 75,000 crore, spanning across 12 states within both the parent company and two InvITs. This milestone further strengthens IRB's position in India's infrastructure landscape, promising increased efficiency and substantial cost savings for the organization.

ET