The company involved in this transaction is a Delhi-based EPC contractor doing road projects. The company is involved in construction of roads, highways, buildings, etc. for various Central (NHAI, MORTH, Ministries) & State Government (State PWD & Road Departments) authorities. The company has been in this business for the past 23 years and has executed orders worth more than INR 30 Bn till date.
The company has been one of the long-standing clients of Coinmen Capital. We have raised WC credit facilities for the company and advised the company at the time of formation of consortium for their working capital facilities.
The company was awarded road projects by PWD, Maharashtra under the Hybrid Annuity Model (HAM) of the Maharashtra State Government amounting to INR 3.84 Bn, with a contract period of 12 years.
The company had purely been an EPC contractor since inception, with these being the first such projects for the company. In addition, these were the initial HAM projects launched by the Maharashtra State Government and are a modified version of the standard NHAI HAM Projects. Owed to this, the lenders had hesitations regarding the funding of these projects with concerns around budgetary support and equity matrix.
To achieve financial tie-up for these projects in the form of structured project term loan.