The NCD proceeds would be used by the SPV to refinance the existing project debt and provide significant saving of over Rs 10 crore annually at revised interest cost of ~8.9%.

Previously, IRB Infrastructure Developers had re-financed its two SPVs under the Private InvIT arm (through private placement of listed NCDs), Viz. Solapur Yedeshi Tollway and Yedeshi Aurangabad Tollway. This involved fixing rates for at least 5 years at optimized cost and amortization; thus, resulting in incremental surplus cash generation of around Rs.500 crore over following 5 years and further achieving rating improvement to AAA for these assets, which is a first for any BOT Asset in India.