India Infrastructure Finance Corporation, ADB to back GMR SPV bonds

MUMBAI: A GMR-floated SPV for construction of roads in Andhra Pradesh will raise Rs 316 crore from the bond market on the back of guarantee issued jointly by India Infrastructure Finance Corporation (IIFCL) and Asian Development Bank (ADB).

GMR Jadcherla Expressway, an SPV floated by GMR, has the mandate from National Highway Authority of India to construct a 53 km stretch between Farukhnagar and Jadcherla in Andhra Pradesh.

The company had initially borrowed from banks to finance the project. Now the company is replacing the loan with money raised through the bond market.