L&T IDPL raises Rs 3,400 crore debt for two road projects

MUMBAI: L&T Infrastructure Development Projects has raised debt of Rs 3,400 crore for two road projects in Maharashtra from a consortium of banks led by ICICI Bank, the infrastructure development arm of Larsen & Toubro said Friday.

"With the debt tied up for these two project, our entire portfolio of 19 road projects has achieved financial closure," said K. Venkatesh, chief executive of L&T Infrastructure Development Projects.

L&T IDPL is executing two contiguous National Highways Authority of India's road projects from Amravati to Jalgaon and Jalgaon to Gujarat-Maharashtra, respectively, for a total project cost of Rs 4,500 crore.

The projects are being funded in the debt-to-equity ratio of 75:25. The loan carries interest rate of 11.5-11.75 per cent, Venkatesh said. Both roads are a part of East-West connector, linking hubs of economic activity in Gujarat and Maharashtra to the mineral-rich states of Orissa and Chhattisgarh.

The total length of these projects is 484 km and the concession period are 19 years and 20 years respectively including the construction period of 2.5 years. L&T IDPL will design, build, finance, and operate the projects.

L&T IDPL has a portfolio of 19 projects, of which 11 are currently operational.