Investor Presentaiton
REG: Pacific Renewable Energy Program
Case Studies - Infrastructure
IND: Highway Equipment Finance Project
Client: GR Infraprojects Limited (GRIL)
ADB Assistance: $23m debt financing equivalent in Indian rupees
Key Features:
•
GRIL is one of the leading engineering, procurement, and construction
companies in the roads and highways sector in India. GRIL intends to use ADB
funding to purchase new construction equipment and machinery for its
execution capacity expansion. The increased operational capacity will enhance
GRIL's ability to execute its existing order book and enable it to bid for larger
and more complex projects, thus supporting the investment plans of the
Government of India in the roads sector.
GRIL is majority owned by the Agrawal family, and has years of experience in
the road construction industry.
ADB's Value Addition:
Provide access to medium-term financing to GRIL where such financing is
becoming scarce for companies operating in core infrastructure sectors.
Help strengthen human resource management system, promote gender
equality, and improve social and environment standards by implementing a
standardized corporate wide environment, health and safety policy.
Approval Date: 16 July 2019
Commitment Date: 9 August 2019
ADB Assistance: $50.0m loan; $50.0 partial risk guarantee
Key Features:
•
•
The Program encourages private sector investment in renewable energy by
mitigating short term liquidity risk, through a donor-backed standby letter of
credit, and supports long-term investment through a partial risk guarantee
(PRG).
The Program includes one or more of the following forms of financing support:
a letter of credit of up to 24 months to cover short-term liquidity risk,
drawable by a project company in an amount covering payments due but
unpaid under the PPA; (ii) a PRG covering standard political risks and breach of
contract under a power purchase agreement (PPA); (iii) a direct loan to the
private sector investor or special purpose vehicle; and (iv) technical assistance
for transaction advisory support and streamlined project preparation or
tender processes.
ADB can lend local currencies by providing a partial credit guarantee (PCG)
with a local currency lender.
ADB's Value Addition:
•
•
Create an enabling environment and address key investment risks to promote
private sector investment in the Pacific.
Encourage transparency and governance through technical assistance.
Approval Date: 17 April 2019
7 October 2019
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