IRB Infrastructure, one of the largest toll road operators in India, plans to raise around Rs 500 crore as redeemable non-convertible debentures (NCDs) using the private placement route.
Anil Yadav, group chief financial officer of IRB Infrastructure, told Financial Chronicle that the fresh NCD issue will help the company extend the average maturity of the existing loan to around five years. "The company has existing Rs 900 crore short-term loans whose borrowing cost is around 11.25 per cent. We hope to extend the average maturity of loans to five years from the current one to two years maturity,” said Yadav.
“The rate of NCDs would depend on the kind of rating we get from the rating agencies. Also, we would wait for some more time for the government treasury rates to move up,” added Yadav.
IRB Infrastructure has around Rs 8,400 crore worth of road projects under its belt, out of which around Rs 6,400 crore is own EPC work.
Anil Yadav, group chief financial officer of IRB Infrastructure, told Financial Chronicle that the fresh NCD issue will help the company extend the average maturity of the existing loan to around five years. "The company has existing Rs 900 crore short-term loans whose borrowing cost is around 11.25 per cent. We hope to extend the average maturity of loans to five years from the current one to two years maturity,” said Yadav.
“The rate of NCDs would depend on the kind of rating we get from the rating agencies. Also, we would wait for some more time for the government treasury rates to move up,” added Yadav.
IRB Infrastructure has around Rs 8,400 crore worth of road projects under its belt, out of which around Rs 6,400 crore is own EPC work.