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IRB Infrastructure Trust’s subsidiary, Udaipur Tollway Ltd. (UTL), has raised Rs 700 crore through an issue of non-convertible debentures on a private placement basis to investors. IRB Infrastructure Trust is sponsored by IRB Infrastructure Developers Ltd.

UTL has allotted unlisted, rated, redeemable nonconvertible debentures aggregating to Rs 700 crore on a private placement basis to eligible investors on December 29, 2022.

The special purpose vehicle will use the proceeds to refinance the part-repayment of existing project debts and a lower interest rate of 8.9 percent will lead to annual interest savings of Rs 10 crore.

The company mentioned that it has been exploring avenues to refinance its completed projects as it looks to enhance returns to investors.

IRB Infra, earlier this quarter, re-financed its two SPVs under the private InvIT arm – Solapur Yedeshi Tollway Ltd. and Yedeshi Aurangabad Tollway Ltd.

The refinancing involved fixing rates for at least five years at optimised cost and amortisation, resulting in incremental surplus cash generation of around Rs 500 crore over the following five years and further achieving rating improvement to AAA for these assets, which is a first for any BOT asset in India.

IRB Infrastructure Developers Ltd. is a multinational infrastructure player in the highways segment. IRB has an asset base of over Rs 60,000 crore in 10 states across the parent company and two InvITs.

Shares of IRB Infra ended 0.43 percent higher at Rs 290.15 on Friday.

(Edited by : Rukmani Krishna)