IFC to make $30 mn debt investment in Kandla International Container

GANDHIDHAM : Kandla International Container Terminal Private Limited (KICT), which is a part of the J.M. Baxi Group and is 100% held by International Cargo Terminals & Infrastructure Pvt Ltd (ICTIPL), is all set to receive senior debt loan of up to $30 million from IFC, the investment arm of World Bank, as per a disclosure.

KICT entered into a 30-year Concession Agreement (CA) with the Deendayal Port Trust (DPT), erstwhile Kandla Port Trust, to upgrade, operate and maintain two container berth terminals – Berth 11 and 12 -on design, build, finance, operate and transfer (DFBOT) basis.

KICT commenced operations in January 2017.

As per the disclosure, the total cost of the project is estimated at $32.0 million and the proposed investment from IFC is up to $30.0 million.

The proceeds from the fund raised will be used for equipment purchase, brownfield capital expenditure including yard expansion for increasing the container handling capabilities and to refinance existing debt for the two container berths.

KICT is a 100% subsidiary of ICTIPL – whose shareholders are the J.M. Baxi Group and Integral Investment South Asia VIII.

ICTIPL was established in 1947 and began operations as a provider of shipping support services and gradually expanded its service offerings to container handling, cargo consolidation, shipping agency services, ship chartering etc.

The J.M. Baxi Group has over 100 years of operating history during which it has successfully transformed into one of India’s largest integrated maritime logistics player with a vast network of offices in India & overseas and a good understanding of the industry.

KICT is situated on the shores of the Kandla Creek which runs into the Gulf of Kutch, on the west coast in the state of Gujarat, India.

Source : VC Circle