GIC extends interim loan to IRB Infrastructure Developers Limited

Reportedly, GIC has accorded a Rs 7 billion-Rs 7.5 billion interim loan to IRB Infrastructure Developers Limited, a few months after it made a commitment that it would infuse Rs 44 billion in an infrastructure investment trust (InvIT) created by IRB. GIC and IRB are likely to close the Rs 44 billion deal in the next two months. The interim loan is to meet the immediate business needs of the projects that will become part of the InvIT. Besides, IRB has issued debentures against the interim loan, with yields in the range of 11-11.8 per cent and a two-year maturity. About 90 per cent of IRB’s lenders, including Andhra Bank, Canara Bank, SBI, Bank of Baroda, Aditya Birla Finance and ICICI-backed Infra Debt Fund have reportedly given no-objection certificates (NOCs) to transfer some of IRB’s assets to the IRB InvIT.

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