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A subsidiary of IRB Infrastructure Trust (sponsored by IRB Infrastructure Developers Limited) — Udaipur Tollway Limited (UTL) has announced that it will issue unlisted, rated, redeemable debentures to investors. According to the statement, the company has allotted debentures of Rs 700 crore. The allocation was made on the basis of a private placement.
The Mumbai-based highway construction company said UTL will use the proceeds to refinance the project’s existing debts.
“With a focus on increasing returns to our investors, the Company is exploring ways to refinance its completed projects.” The partial refinancing completed for our Udaipur Shamlaji BOT property in Rajasthan is the next iteration of this strategy,” a company spokesperson said in a statement.
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“Income from these non-convertible debentures would be used to refinance the said project through partial repayment of the project’s existing debts, with lower interest costs, which would bring huge interest savings over the life of the project,” added the spokesperson.
Earlier, the company refinanced its two special purpose vehicles (SPVs) under the Private InvIT arm through a private placement of listed non-convertible debentures, Solapur Yedeshi Tollway Limited and Yedeshi Aurangabad Tollway Limited. This included fixing rates for at least 5 years with optimized cost and depreciation.
This helped the company generate an incremental cash surplus of around Rs 500 crore and achieve a rating upgrade to AAA.
Meanwhile, the company’s shares ended 0.93 percent lower at RSD 288.15 on the NSE on Thursday. On the Belgrade Stock Exchange, it amounted to Rs 288.35, which is a drop of 0.79 percent.
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