Kochi Metro to sign term loan agreement with Canara Bank for Rs 1,170-cr
In a Wednesday press release, Kochi Metro Rail Ltd (KMRL) has revealed that it will sign a term loan agreement with Canara Bank in Kochi on July 20.
The KMRL-Canara bank loan agreement will be signed for an amount of Rs 1,170 crore. The term of the loan will be 19.5 years, with a 7-year moratorium. Canara Bank will charge a 10.80 percent rate of floating interest on the loan.
According to the KMRL press release, the term loan agreement between KMRL and Canara Bank will be signed in presence of Aryadan Mohammed, Power and Transport Minister of Kerala; R K Dubey, Chairman and Managing Director of Canara Bank; and Elias George, Managing Director of KMRL.
The Kochi Metro project will entail a total cost of Rs 51,181 crore; out of which Rs 2,170 crore will come from external funding.
Earlier, in February this year, KMRL had signed agreement with Agence Francaise de Developpement for a funding of 180 million Euros. Now, with the Canara Bank signing a term loan agreement with KMRL, the approved external funding requirements of KMRL will be duly met and financial closure will be officially completed.
With regard to the funding from Agence Francaise de Developpement and Canara bank for the Kochi Metro project, Elias George said: “With the robust financial assistance through a balanced mix of external and domestic funding from two of the most reputed funding agencies, KMRL can now go ahead confidently with the project implementation.”
Source- The Economic Times
Canara Bank, Elias George, Kochi, Kochi Metro, Kochi Metro Rail Limited, Pact for Rs.1170-cr. metro loan signed
