SP sets a benchmark

SP Jammu Udhampur Highway Limited, a Shapoorji Pallonji group company has recently raised Rs 2,610 crore through non-convertible debentures to refinance its existing foreign currency and rupee loans. Quoting company sources, The Hindu dated August 14, 2015 states that "this is among the largest private sector infrastructure bonds issued in India, and is the largest bond issue in the road sector… The refinancing will help the company to lower its cost of debt and eliminate exchange rate risk.” The interest rates for the bonds is 9.15%, payable semi-annually and have been issued with varying maturities starting December 2015 and ending by December 2030, it is reported.

A view of the Jammu-Udhampur highway

S. Mukundan, director of the company is quoted in the Mint of August 11, 2015 that, "We have set a benchmark and hope this paves the way for financing of quality infrastructure assets beyond bank loans.”
SP Jammu Udhampur Highway Limited is a special purpose vehicle (company) set up for the design, construction, development, finance and operation of a 64.58 km highway stretch between Jammu and Udhampur in the state of Jammu and Kashmir. The company was awarded the project by the National Highway Authority of India in 2011. Mukundan, quoted on NDTV, said that "the project had many firsts: the first under construction project to be financed by external commercial borrowings, completed ahead of schedule, and now this marquee issuance...” The road is the link to the Hindu shrine Vaishno Devi which is used by hundreds of thousands of devotees during their pilgrimage.