Bengaluru: European bank to lend 500 million euros to BMRCL

BENGALURU: European Investment Bank (EIB) has agreed to lend 500 million euros to BMRCL in two tranches, for funding part of Reach 6 (Gottigere to Nagavara) of Phase 2.

Asian Infrastructure Investment Bank (AIIB) will co-finance with EIB for 300 million euros. The total loan amount for Reach 6 will be 800 million euros. The sovereign loan agreement for the first tranche of 300 million euros was signed between the Centre and EIB on October 5.

The loan agreement for the second tranche from EIB will be signed before March 2019. These loans are untied and have a 20-year tenure, which includes 5 years moratorium for principal repayment.

For the loan agreement for 300 million euros, the Project Agreement was signed on Tuesday by the BMRCL Managing Director Mahendra Jain, and EIB Loan Officer Sunita Lukkhoo.

The EIB Team headed by Lukkhoo also met Benagluru Development Minister K.J. George. He exhorted EIB to consider funding other infrastructure projects undertaken by the State Government.

Lukkhoo said their financial support for BMRCL is the largest ever for a transport outside Europe. 

The financial support from EID would support one of the dense corridors in the metro network, which would subsequently connect to the Kempegowda International Airport.

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