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Through its subsidiary, SP Jammu Udhampur Highway Limited, a division of SP Infra, Shapoorji Pallonji Group, successfully placed and priced non-convertible debentures of Rs. 2,610 crores. By doing so, outstanding foreign currency and rupee borrowings were retired. Marking many firsts according to S. Mukundan, Managing Director, Shapoorji Pallonji Infrastructure Capital Co Pvt. Limited, the Group has achieved yet another landmark in the infrastructure space. Apart from being the longest tenor (15 years) infrastructure asset backed bond, it is also the first project backed bond to have a call option on part of the issue size.

It is among the tightest pricing achieved by a project bond, said S. Mukundan. Rated AAA (SO) by ICRA, at Rs 2,610 crores, this is among the largest private sector infrastructure bonds issued in India. Largest bond in the roads sector, and backed by annuity payments from National Highways Authority of India (NHAI), the proceeds of the bond will help SP Jammu Udhampur Highway Limited to lower its cost of debt and importantly eliminate exchange rate risk of the existing foreign currency debt. A special purpose vehicle of the Shapoorji Pallonji Group, SP Jammu Udhampur Highway Limited was set up for the design, construction, development, finance, operation and maintenance of a 64.58 km highway stretch between Jammu and Udhampur awarded on a Build, Operate and Transfer (BOT) Annuity basis by the NHAI.

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