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Port operator DP World is reportedly finalizing a USD 422 mn (c. AED 1.55 bn) facility for the construction of the mega container terminal at Kandla, Gujarat, Economic Times reported last week citing sources familiar with the matter. The financing will come from the National Bank for Financing Infrastructure and Development (NaBFID) and Axis Bank.
The details: NaBFID and Axis Bank will provide a term loan facility of INR 17.5 bn (c. AED 777 mn) each. Axis Bank will provide an additional INR 1.4 bn (c. AED 62 mn) guarantee facility and an INR 1.5 bn (c. AED 66 mn) bn as a hedge facility, Zawya adds.
What was said: “DP World has received confirmation from NaBFID and Axis Bank to fund the project,” according to a Ministry of Ports, Shipping, and Waterways official overseeing Deendayal Port Authority. “DP World will be signing the loan agreement with the banks soon,” he stated.
Background: DP World and India’s Deendayal Port Authority (DPA) signed a concession agreement for the mega container terminal at Kandla, Gujarat back in August. The agreement — valued at USD 510 mn — involves the operation, development, and maintenance of the new terminal through a 30-year public-private partnership. The mega-container terminal will be completed by 2027, with an annual capacity of 2.2 mn TEUs.
