A major infrastructure project finance deal in India concluded between L&T Interstate Road Corridor Limited and Abu Dhabi Commercial Bank (ADCB) won the prestigious Euromoney Project Finance 2006 'Transport: Deal of the Year' Award.
The loan was extended to L&T Interstate Road Corridor Limited on a non-recourse basis to the BOT project that was awarded by National Highways Authority of India (NHAI) to finance the construction of a 76-km highway between Palanpur in Gujarat to Saroopganj in Rajasthan. ADCB is the sole financier of this Tranche B USD based external loan borrowing representing a facility of AED 200 million (equivalent of Rs. 250 crores).
At 16.5 years, this transaction is the longest tenured External Commercial Borrowing in India in any class of external debt financing, setting a new benchmark in this segment of funding.
L&T Interstate Road Corridor Limited, is a 100% owned SPV of L&T Infrastructure Development Projects Limited (L&T IDPL). L&T IDPL is a subsidiary and the holding company for the infrastructure investment portfolio of Larsen & Toubro Limited (L&T). L&T IDPL has executed and is executing projects with a committed investment outlay of over US$ 4 billion.
ADCB did 50% of the financing for the project. Citibank was advisor to the deal and participated in the rupee-lending along with Bank of Baroda and India Infrastructure Finance Company Limited. ADCB's India branch is the Lender's agent and Security Agent for the transaction.
The award will be presented at a function in Hong Kong on March 22, 2007, where innovation and excellence will be acknowledged across the project finance markets.
