Sadbhav Infrastructure’s subsidiary completed refinancing of its debt

Sadbhav Infrastructure Project Limited’s (SIPL’s) subsidiary – Hyderabad Yadgiri Tollway Private Limited (HYTPL) – has completed refinancing of its existing rupee debt facilities with new debt taken from other lenders at revised terms and conditions. The salient features of the new terms and conditions include reduction in interest rates from the current level, extension of the repayment pattern covering the majority of the balance concession period, tie-up for the first major maintenance expenses, issuance of non-convertible debentures (NCDs)/bonds to infrastructure debt funds and refinancing of existing external commercial borrowing (ECB) facilities. HYTPL was involved in the widening of the 35.4 km Hyderabad-Yadgiri section of National Highway (NH)-202 from km 18.6 to km 54 in Telangana on a design-build-finance-operate-transfer (DBFOT) basis. The original concession period for the project is 23 years from the date of appointment. HYTPL’s commercial operation date was December 10, 2012. As of December 31, 2015, the actual toll revenue for the project stood at Rs 392.5 million. The total rupee debt outstanding as of March 31, 2016 was Rs 23.19 billion and the total outstanding ECB was $24.3 million. The total equity (including subordinate debt from promoters) stood at Rs 1.47 billion.

The banks lending to ABG Shipyard Limited have decided to issue a public notice inviting expression of interest (EoI) bids from buyers to pick up a controlling stake in the shipyard. The banks are also actively pursuing the possibility of a change in ownership and management of the company. Another option that banks are exploring is to sell assets of the shipyard to recover their money.  Since March 2014, ABG Shipyard has been in the midst of a corporate debt restructuring programme, under which lenders agreed to recast loans of Rs 110 billion, offered the firm a two-year hold on interest payment, reduced borrowing cost and extended the repayment period.

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