24 February 2007
Euromoney Award For ADCB-L&T Transaction
Abu Dhabi : A major infrastructure project finance deal in India executed between Abu Dhabi Commercial Bank (ADCB) and L&T Interstate Road Corridor Limited won the prestigious Euromoney Project Finance 2006 ‘Transport: Deal of the Year’ Award
ADCB is the sole financier of the Tranche B USD based external loan borrowing representing a facility of AED 200 million (equivalent of INR 250 crores) to finance the construction of a 76-km highway in Western India. At 16.5 years, this transaction is the longest tenured External Commercial Borrowing in India in any class of external debt financing, setting a new benchmark in this segment of funding.
The borrower, L&T Interstate Road Corridor Limited, is a 100% owned SPV of L&T Infrastructure Development Projects Limited (L&T IDPL). L&T IDPL is a subsidiary and the holding company for the infrastructure investment portfolio of Larsen & Toubro Limited (L&T). L&T is a technology-driven engineering and construction organization, and one of the largest private sector companies in India. It has additional interests in manufacturing, services and Information Technology. L&T also has several projects under execution in UAE. L&T IDPL has executed and is executing projects with a committed investment outlay of over US$ 4 billion.
The loan was extended on a non-recourse basis to the BOT project that was awarded by National Highways Authority of India (NHAI). ADCB did 50% of the financing for the project. Citibank was advisor to the deal and participated in the rupee-lending along with Bank of Baroda and India Infrastructure Finance Company Limited. ADCB’s India branch is the Lender’s agent and Security Agent for the transaction.
The award will be presented at a function in Hong Kong on March 22nd, where innovation and excellence will be acknowledged across the project finance markets. Earlier honours accorded by Euromoney to ADCB are the ‘Most Improved Islamic Finance Institution’ as well as ‘Best Middle Eastern Borrower’ in recognition of its EMTN programme, syndicated loan and subordinated debt issues. ADCB was also voted 'Best Local Currency FX Trading Bank in UAE' in a recent Euromoney survey.
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