Bangalore Metro Rail signs $335-mn loan deal with AIIB

BANGALORE: Bangalore Metro Rail Corporation (BMRCL) and Asian Infrastructure Investment Bank (AIIB) have signed a project funding agreement for $335-million loan for the Phase-2 of Bangalore Metro rail project.

BMRCL needs to raise 12,141 crore through senior debt, including sovereign loan, for the Phase-2 work.

“European Investment Bank (EIB) has agreed to lend €500 million in two tranches, for funding part of Reach-6 (Gottigere to Nagawara), project cost of Phase-2 of the BMRCL. AIIB agreed to co-finance $335 million with EIB. Thus, the total amount will be equivalent of €800 million for Reach-6,” said a BMRCL release.

The sovereign loan agreement with EIB for the first tranche of €300 million was signed on October 5, 2017. The loan agreement for the second tranche of €200 million was signed on September 28, 2018.

The sovereign loan agreement with AIIB was signed on June 4 by Ajay Seth, Managing Director, BMRCL, and Supee Teravaninthorn, Director General, AIIB.

“With signing of this loan agreement, BMRCL has tied up funds to the tune of 7,300 crore for Phase-2. BMRCL will tie up the remaining funds in due course of time,” the release said.