L&T to raise Rs 11,400 cr debt

L&T is in process of achieving financial closure for its recently bagged Hyderabad Metrorail project.

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Infra major L&T,which is in the process of achieving financial closure for its recently bagged Hyderabad Metrorail project,will be raising Rs 11,400 core debt from a consortium of 10 banks led by State Bank of India,said sources close to the development.

The original cost of the project that was estimated to be around Rs 12,132 crore has gone to up to Rs 14,800 crore as the length of the route is expected to be increased.

A senior government official who has confirmed having received financial closure from L&T said they could not make it public until March 15 as election code of conduct is in place in the AP.

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“Total debt component is Rs 11,400 crore. L&T equity is Rs 3,400 crore. SBI is the lead banker with Rs 2,100 crore.

Total 10 banks are participating in the project,” sources told a news agency adding ICICI,Punjab National Bank,Axis bank are some of the banks among others.

Sources said the government will verify the funding pattern of the project and countersign as a third party guarantor on the financial closure as mandated by the concession agreement.

L&T which had signed the concession agreement in September last year with the AP government has already initiated soil testing and topographical survey along the 71-kilometre route to be covered by the Metro rail.

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“Actual project work will start within three months. Once we start we do not want to stop the work. Thats why we have started soil testing simultaneously as the concession agreement has been given to us. We want to save as much time as possible,” a senior official of L&T said on condition of anonymity.