JNPT raises $400 million loan that is dollar-denominated other ports may follow suit
MUMBAI: The country’s largest container handling port Jawaharlal Nehru Port Trust has finalized an understanding to increase a dollar-denominated loan of $400 million, or around Rs 2,660 crore, at near to a tenth of prevailing domestic borrowing rates.
This is actually the first dollar-denominated loan for JNPT that is also referred to as Nhava Sheva.
“The agreement was finalized night that is last. The mortgage is raised at 2.36per cent price in comparison to 12per cent which is the prevailing rate that is domestic” delivery minister Nitin Gadkari told ET during the ongoing Maritime India Summit here on Friday.
“This ended up being my brainchild. ICICI Bank had been lending at 12percent. We stated why? Raise dollar loans. Now viability associated with project defintely won’t be problem,” the minister stated.
Skillfully developed stated this may result in other major ports additionally using the outside borrowing that is commercial route as this would work down cheaper despite the undeniable fact that the rupee is dropping against US buck.
“This is an evidence of concept which can be implemented by the ministry of delivery in six other major ports with surplus dollar revenues towards raising cheaper funding in buck terms,” said Vinod Bahety, senior president for business finance at Yes Bank.
JNPT deputy president Neeraj Bansal said the slot will raise $300 million from State Bank of Asia and also the sleep from DBS Bank. “DBS and SBI had both show up with really attractive prices with a few decimal points worth of huge difference. He told ET so we gave the mandate to both.
JNPT handled 4.49 million TEUs (twenty foot units that are equivalent of container cargo in 2015-16 and is designed to measure this as much as 10 million TEUs by 2020-21.
The slot received total profits of Rs 1,600 crore, including buck income worth Rs 250 crore, into the just-ended economic 12 months, stated Bansal.
An individual knowledgeable about the growth stated JNPT’s dollar receivables or revenues have now been pegged as collateral resistant to the loan.
The slot will utilize the debt funds for boosting roadways linking to your slot, which may have within the last few several years become increasingly clogged because of traffic that is growing. It has in change generated congestion that is massive forcing shippers to divert cargo to ports in Gujarat.
JNPT intends to invest about Rs 3,500 crore in expanding the four lane highway to six lanes, Bansal stated. This is the major chunk of the money spending worth Rs 5,000- 7000 crore for the following few years. The remainder capex will get into modernising equipment and developing other modes of cargo transport, he stated.
Work with the highway will begin soon and can probably just take couple of years to perform, said Bansal.
JNPT currently earns vessel fees from international shippers in buck terms, however the re re payments are produced in rupees and pegged to your dollar rate that is prevalent. It’s a training accompanied since 1991.