Hazaribagh Ranchi Expressway Limited

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Hazaribagh-Ranchi Expressway Limited (HREL), was created to expand to four lanes a 71.16 km stretch on NH 33 connecting Hazaribagh to Ranchi in the State of Jharkhand. The National Highway Authority (NHAI) awarded the project to HREL, a subsidiary of IL&FS Transportation Networks Limited, an IL&FS group company. The project was to be developed under a BOT (Annuity) concession for a period of 18 years including an initial construction period of two and a half years. Total project cost was INRs 86.9 billion (US$ 190 million). The project reached financial closure in February 2010 with a debt: equity ratio of 3.80:1. The debt requirement for HREL aggregating to Rs. 688 crore. IL&FS Financial Services Ltd was the Sole Financial Advisor and Arranger for the project. The senior debt facilities have been financed by a consortium of 11 banks and IIFCL. The lenders' consortium is led by Bank of India. The senior debt facility has been syndicated on a project recourse basis. Repayments of a little over three quarters of the Loan are envisaged to be repaid over a period of 14 years. The balance is envisaged to be repaid in single bullet installment at the end of the tenor. The project is scheduled to achieve commercial operations by Aug 2012.