Adani to raise Rs 12k cr debt from SBI for Ganga Expressway
30 May 2022
2 Min Read
CW Team
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鈥檚 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鈥檚 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鈥檚 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.
Also read: Ganga expressway to be built by IRB Infra and Adani GroupThe 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鈥檚 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鈥檚 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鈥檚 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
Next Story
Reliance, Diehl Advance Pact for Precision-Guided Munitions
Diehl Defence CEO Helmut Rauch and Reliance Group鈥檚 Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence鈥檚 long-term commitment to the Indian market and its support for the Indian Government鈥檚 Make in India initiative. The partnership鈥檚 current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the 鈥淰ulc..
Next Story
Modis Navnirman to Migrate to Main Board, Merge Subsidiary
Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company鈥檚 growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..
Next Story
Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025
The Bharat InvITs Association鈥檚 industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States鈥� share of global activity below 15 per cent. Meanwhile, in..
