Title - Bangalore Metro Corp. To Raise Debt

BMRCL or Bangalore Metro Rail Corporation is on course to raise R300 Cr through a private placement, states BS.The metro rail developer is planning to come up with a secured non-convertible and taxable bond issue sometime next month, with the proceeds to be used for the first phase development.Phase 1 of the metro project is a 42.3-km stretch with an estimated cost of R11,609 Cr. Currently the test runs on the third reach spanning 5.3-km between Peenya and Yashwantpur is being undertaken.Earlier loan providers to the project involve the Japan International Co-operation Agency (JICA) and French firm, Agence Française de Developpement (AFD).Asian Development Bank had extended up to $250 Mn in 2011 and Indian FIs like HUDCO and IIFCL have also contributed to the funding of the project.India Ratings & Research rated the first bond transaction of metro rail project in India of BMRCL. It has rated BMRCL’s proposed bonds at ‘IND AA(exp)’.The number of passengers expected to travel on the metro everyday is estimated to be around 16.10 lac by 2021.In a major debt issue for a metro rail project, Reliance Infra had issued R7,000 Cr debt for developing the second project in Mumbai, connecting the suburbs of Charkop, Bandra and Mankhurd with a total project cost of R11,500 Cr, back in 2010.