Mumbai: IL&FS Transportation Networks Ltd (ITNL), the infrastructure development arm of Infrastructure Leasing and Financial Services Ltd (IL&FS) Group, on Thursday said it has raised €23.4 million (₹186.11 crore) in debt financing from KfW IPEX-Bank.
KfW IPEX-Bank is a German Exim bank and provides financing for international projects and export finance. It offers medium- and long-term financing to support key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects.
IL&FS Financial Services Ltd acted as the financial advisor to ITNL for the transaction.
The financing will be used for the Rapid Metro South Extension Project in Delhi that ITNL is working on. The project is an extension of the existing dual-track metro line by approximately 7 km and five stations connecting the IT industrial park in Gurgaon to Delhi’s metro system and the southern part of Gurgaon.
A consortium comprising of entities of a large German manufacturer have supplied rolling stock, the signalling and the power system, ITNL said.
“This is the first ECA financing ever done to support an Indian metro project. In India, soft loans by Development Finance Institutions (DFIs) dominate in this segment. With our financing for the benefit of the Rapid Metro line expansion in Gurugram, we have introduced a completely new financing model in the Indian market,” said Luis-Miguel Gutierrez, chief representative of KfW IPEX-Bank in India.
The overall investment in the project adds up to ₹2,400 crore (approximately €300 million), ITNL said in the statement.livemint