India Resurgence Fund, promoted by Piramal Enterprises Limited and Bain Capital Credit, along with international co-investors, today announced an investment of $75 million (Rs 555 crore) in Thrissur Expressway Limited (TEL), a part of Hyderabad-based KMC Constructions Limited (KMC). The investment will be used towards restructuring of TEL’s existing debt and for last mile financing to enable project completion.
TEL, a special purpose vehicle of KMC, is a 28 km highway project in the state of Kerala, between Thrissur and Vadakkanchery. It is a part of the National Highway that connects Kochi, Kerala and Salem, Tamil Nadu which passes through several important cities such as Erode, Coimbatore, Palakkad and Thrissur.
TEL was awarded the project in 2009, for widening the existing two lane stretch to six lanes, by the National Highway Authority of India under the Design, Build, Finance, Operate, and Transfer basis, for a concession period of 20 years.
Shantanu Nalavadi, Managing Director, IndiaRF said, “On completion, the project will significantly improve the connectivity between the key states of South India namely, Kerala and Tamil Nadu and will create significant efficiency as well as savings for both commercial and passenger traffic. IndiaRF has the capital and the expertise to invest in similar opportunities that will provide effective solutions that address bottlenecks in infrastructure projects of national interest, resolve issues in the capital structure of such projects, support financial institutions and create win-win situations for all stakeholders.”
Vikram Reddy, Managing Director, KMC Constructions Limited said, “The investment from IndiaRF comes at a critical juncture for project completion. We are confident of completion of the last mile and opening the entire stretch at the earliest so that it improves the connectivity between the towns and key states of South India. We are particularly pleased that we have been able to design, build and operate a 1km long tunnel which achieves the twin objective of improving connectivity and at the same time, contributes to the rich biodiversity of this region.”
Equirus Capital are the exclusive advisors to KMC on this transaction.
