Mumbai: Mumbai Metro One Private Limited (MMOPL), a subsidiary of Reliance Infrastructure Ltd., has completed the refinancing of project borrowings of Rs 1,650 crore, achieving substantial benefits through extension of maturity and reduction of interest costs.
With this refinancing, the final repayment of Rs 1,650 crore on the loans has been extended to the year 2037, almost 22 years from date, thereby enhancing financial flexibility for the company.
The interest rate stands reduced from 13% to 11.75% annually. The average maturity period of loans has now almost doubled to 14 years, a company release said.
MMOPL is Reliance Infrastructure Ltd’s Special Purpose Vehicle (SPV) created to develop, implement and operate Mumbai’s first metro line, on a public-private partnership (PPP) model.
An MMOPL spokesperson said, “The refinancing brings about greater alignment of the debt repayment profile with the life of the concession period and the Company’s cash flows. We look forward to delivering increased value to the Company’s shareholders, and more comfort and convenience to metro commuters.”
The 11.40 Km long corridor connecting Versova with Ghatkopar caters to nearly 2.75 lakh commuters every day. Mumbai Metro One completed the first year of its operations on June 8. On an average, the service runs 368 times on weekdays, with an average frequency of 3.48 minutes.