Kochi Metro Rail limited will sign the term loan agreement with Canara Bank for an amount of Rs. 1170 crore on 20th July 2014 at 12 PM in KMRL conference hall. The agreement will be signed between Canara Bank and KMRL in the presence of R.K. Dubey, CMD Canara Bank , Shri. Elias George, MD, KMRL and Shri. Aryadan Mohammed, Minister for Power and Railways, Government of Kerala.
Canara Bank loan is for a term of 19.5 years with a moratorium of 7 years. The rate of interest will be 10.80% floating.
The total cost of the Kochi Metro project is Rs. 5181 crore in which Rs. 2170 is from external funding. KMRL had alredy signed agreement with Agence Française de Développement (AFD) for 180 million Euros on 8th February. Now with the Canara Bank loan, the approved external funding requirements of KMRL is met and the financial closure is formally completed.
“With the robust financial assistance through a balanced mix of external and domestic funding from two of the most reputed funding agencies, KMRL can now go ahead confidently with the project implementation. This will boost the confidence of stakeholders of the project and would enable us to rope in the best resources for the project at a competitive price ”, said Shri. Elias George, MD, KMRL.