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Pune IT City Metro Rail Limited

Assistance in underwriting debt requirement

2021

Overview

  • SPV incorporated to construct, operate and maintain metro from Shivaji Nagar – Hinjawadi in Maharashtra
  • Promoted by entities of Tata & Siemens, renowned conglomerates
  • First project to be bid out on PPP mode by PMRDA 
  • Since the project involved Viability Gap Funding, the PPP cell under Ministry of Finance is also involved

 

Deal Highlights

  • Appointed by SBI for assistance in underwriting and downselling of the debt
  • Project cost estimated by Company for raising funds exceeded project cost estimates in Concession Agreement. Detailed discussions were held with all the stakeholders i.e., Company, LIE to understand the reasons for such variance. 
    • SBICAP helped SBI in analyzing the project cost viz-a-viz the cost incurred in other similar metro projects
  • As per the provisions of Concession Agreement, the debt is not entirely covered under termination payment during both construction & operations period.
    • SBICAP assisted in analyzing the shortfall in debt to determine the Sponsor Support required for coverage of entire debt
  • Several rounds of discussions were held with all stakeholders for conclusion of deal and despite involvement of multiple stakeholders with varied interests, the documentation was completed in a seamless manner

Deal Summary

Project Cost INR 74.20 Bn
Debt Size INR 47.90 Bn
SBICAP Role Financial Advisor

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