Vizhinjam Seaport raises Rs 2,100cr debt

Divya S Iyer, Managing Director, Vizhinjam International Seaport (VISL) and Baiju Kuruppu, Chief General Manager, NABARD, inked a loan agreement for Rs 2100 crore for Vizhinjam International Seaport Phase 1 under NABARD NIDA scheme on Thursday at VISL Office in Thampanoor, Thiruvananthapuram.

The loan carries 8.40 percent interest per annum with a tenure of 15 years including two years moratorium for principal repayment, says a LinkedIn post by VISL.

"The loan amount will majorly be used to meet financial commitments including stage payments to concessionaire for breakwater construction, equity support, land acquisition for port and rail connectivity, and for meeting the preliminary funding of underground rail connectivity project."

The state government could meet all the financial obligations it had committed for the first phase of the project with this loan, the update added. "For the remaining phases, funding will be arranged by the concessionaire as per the concession agreement."

This is the largest loan transaction availed by a Kerala PSU with any financial institution for the largest private sector investment in the state.

Vizhinjam International Seaport is a critical economic infrastructure project promoted by the state in a public private partnership (PPP) mode. Adani Ports & SEZ, which is developing the port, announced the arrival of the first mother ship in July 2024.

“This is a milestone event marking India’s entry into the global transshipment and ushering in a new era in India’s maritime history, positioning Vizhinjam as a critical player in the international trade routes,” Adani Ports said during the inaugural event.