The Hindu Business Line : L&T, Citi consortium ink finance pact

, L&T and a Citigroup-led consortium of banks signed a financing arrangement for US dollar equivalent of Rs 500 crore through a mix of FCNR and ECB funds to finance L&T's Palanpur-Swaroopganj road project.

L&T Interstate Road Corridor Ltd is executing the project, envisaging four-laning of the 76 kms stretch between Palanpur and Swaroopganj on the East-West corridor along the border districts of Gujarat and Rajasthan. The road is an important link for commercial traffic between Mundra and Kandla ports to the Eastern region.

Mr Sanjay Nayar, CEO, Citigroup India and Area Head - Bangladesh, Sri Lanka and Nepal said, "This deal is part of Citigroup's efforts to leverage its infrastructure and project finance expertise to introduce new structures in the Indian market. We believe this structure will serve as a template for future financing of infrastructure projects in India, especially in areas such as power, ports and urban development."

In addition to Citigroup, other banks involved in the deal are India Infrastructure Finance Company Ltd, Bank of Baroda and Abu Dhabi Commercial Bank. Citigroup also acted as the Escrow Agent.

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