A view of the Salem-Kochi Highway, near Chittode in Tamil Nadu.
A view of the Salem-Kochi Highway, near Chittode in Tamil Nadu.Wikimedia

Equirus Capital announces transaction closure for Thrissur Expressway Ltd

India Resurgence Fund commits investment of $ 555 crore in TEL

Mumbai, September 14, 2021

Equirus Capital has announced transaction closure for Thrissur Expressway Ltd. (TEL) wherein India Resurgence Fund, promoted by Piramal Enterprises Limited and Bain Capital Credit, along with its affiliates have committed investment of $ 75 million (Rs 555 crore) in the company, a part of the KMC Group.

The investment proceeds will be used towards restructuring of existing debt of TEL and for last mile financing to complete the project, a press release from Equirus, which acted as Exclusive Advisor to TEL for the entire transaction, said.

TEL, a special purpose vehicle of KMC, is a 28 km highway project in the Kerala, between Thrissur and Vadakkanchery. It is a part of the National Highway that connects Kochi, Kerala and Salem, Tamil Nadu which passes through several important cities such as Erode, Coimbatore, Palakkad and Thrissur.

TEL was awarded the project in 2009, for widening the existing two-lane stretch to six lanes, by the National Highway Authority of India (NHAI) on Design, Build, Finance, Operate, and Transfer basis, for a concession period of 20 years.

Ajit Deshmukh, Managing Director, Equirus, said, “We are happy to assist TEL in arranging the funding to complete this long overdue project. This is the eighth transaction in road space by Equirus Capital and we are elated that we could lend a helping hand to TEL for the successful completion of the transaction. I acknowledge efforts of Vijay Agrawal and Sanjay Chugani for closure of transaction."

Vikram Reddy, Managing Director, KMC Constructions Limited said, “The investment from IndiaRF comes at critical juncture for project completion. We are confident of completion of the last mile and opening the entire stretch at the earliest so that it improves the connectivity between the towns and key states of South India. We are particularly pleased that we have been able to design, build and operate a 1-km-long tunnel which achieves the twin objective of improving connectivity but at same time contributing to the rich biodiversity of this region.

"The NHAI has supported this project of vital regional and national interest, for which we are thankful. We also thank Equirus Capital for advising us and helping us on its closure.”

Shantanu Nalavadi, Managing Director, IndiaRF, said, “We are pleased to partner with KMC Group, as it embarks on an exciting journey to complete this critical project and to support a project that is in the interest of the nation. On completion, the project will significantly improve the connectivity between the key states of South India namely, Kerala and Tamil Nadu and will create significant efficiency as well as savings for both commercial and passenger traffic. IndiaRF has the capital and the expertise to invest in similar opportunities that will provide effective solutions that address bottlenecks in infrastructure projects of national interest, resolve issues in the capital structure of such projects, support financial institutions and create win-win situations for all stakeholders.”


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