Hyderabad Metro raises ₹13,119 crore by selling bonds and commercial papers

Hyderabad, India (Urban Transport News): Larsen & Turbo Ltd-arm L&T Metro Rail (Hyderabad) Ltd has raised Rs 13,119 crore by selling bonds and commercial papers on January 6, 2022. This will be one of the largest fundraisings on a single day.

The company has sold their bonds in three tranches collectively for Rs 2,872 crore each. Those will mature in 3 years 4 months, 4 years 4 months and 5 years 5 months. They yielded in the range of 6.37-6.68 percent. The company has taken help from SBI Capital Market to raise the funds.

Earlier, Metro Rail Today had reported that the company was raising up to Rs 13,600 crore including Rs 8,600 crore worth of bonds and CPs of up to Rs 5,000 crore. Mutual funds, banks and insurers were among others, who subscribed to those securities.

L&T Metro Rail has also sold four sets of commercial papers maturing in 3-6-9 and 12 months. They yielded in the range of 4.55-5.45 percent.

L&T Metro Rail (Hyderabad) Ltd is operating and maintaning 67-km long Hyderabad Metro comprising three corridors of since November 2017.

According to L&T Metro Rail (Hyderabad) Ltd, the company aims to reduce its funding cost by at least 200 basis points by replacing high-cost bank loans with the new debt. The company is running with huge losses due to low ridership and effect of covid pandemic.

The Rs 14,132 crore Hyderabad Metro Rail (HMR) Project, built on the public-private partnership (PPP) mode by the concessionaire L&T Metro Rail (Hyderabad) Ltd completed four years on November 29, 2021.