Kaithal Tollway, a wholly-owned subsidiary of IRB Infrastructure Developers, has achieved financial closure in terms of the concession agreement executed with NHAI, by tying up of project finance of Rs 14 billion.

A consortium of lenders comprising of IDBI Bank, lead Institution, India Infrastructure Finance Company (IIFCL), IDFC, Indian Overseas Bank, Union Bank of India, Bank of Baroda, Canara Bank and Bank of Maharashtra have financed this project.

The total cost of this project is Rs 22.90 billion, out of which viability gap funding from NHAI will be Rs 2.34 billion, equity contribution by the company will be approx. Rs 6.56 billion and remaining will be funded through project finance of Rs 14 billion. The average cost of debt of this project finance is approx. 11.75% p.a. The concession period for the project is 27 years. 

Shares of the company gained Rs 0.9, or 0.38%, to trade at Rs 236.90. The total volume of shares traded was 54,231 at the BSE (10.01 a.m., Tuesday).