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Financial ModelBMRCL

The views expressed in these presentations are the views of the author and do not necessarily reflect the views or policies of

the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the

source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice,opinion, or view presented, nor does it make any representation concerning the same.

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Salient Features

Non-sovereign lending opportunity originated directly by ADB

Project configured prior to ADBs intervention

Bankability assessment (DSCR focus) vis--vis viability estimation (IRRs)

Equitable structure for enhancing project financials whenever needed shadow

fees

Leverage

lending of

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Financial Modeling Process

3

Debt Service Coverage RatioAssumptions Commercial conditions

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4

Project Cost and Sources of Finance

ComponentAmount

USD mio

Total Construction Cost 2514

Pre-operation Expenses 151

Financing Charges 8

Interest During Construction 143

Total Project Cost 2665

Particulars % of Project Cost

Equity 30.00%

Sub-debt 25.00%

Other Debt 45.00%

Debt 70.00%

Organisation Type % of Project Cost

GoI Equity 15.00%

GoK Equity 15.00%

GoI Sub debt 10.00%

GoK Sub debt 15.00%

JICA Debt 14.67%ADB (Non-

Sovereign) Debt 9.52%

Commercial Banks Debt 22.17%

Total 100.00%

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5

Cash Flows

Options considered for improving bankability

Equity infusion in the initial operation period

Longer tenure of debt drawdown

Moratorium on interest payments

Subordinate-debt financing with bullet repayment of principal and interest

SHADOW FEE

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6

Sensitivity Analysis

Value

Cumulative

Probability

0

.1

.2

.3

.4

.5

.6

.7

.8

.9

1.0

100 1090 2080 3070 4060 5050 6040 7030 8020 9010 10000

EV=989

BaseValue0

0.05

0

0

0

0

0

Traffic Growth Factor

Tariff Escalation

Construction Cost Sensitivity Factor

Base Traffic Increment

Base Tariff Factor

O&M - Manpower Cost Factor

O&M - Energy Cost Factor

Value

8000 6400 4800 3200 1600 0 1600 3200 4800 6400 8000

Base Value: 3601

0.02 0.05

0 0.1

0.1 0.1

0.05 0.1

0 0.1

0.1 0.1

0.1 0.1

Base00.0500000

SensType

ValueValueValueValueValueValueValue

LowValue0.050.10.10.10.10.10.1

HighValue0.0200.10.0500.10.1

LowResult

49143158

25602744275834673472

HighResult

5496699246364030360137343729

Swing

104101015120771286842267258

Description

Traffic Growth FactorTariff EscalationConstruction Cost Sensitivity FactorBase Traffic IncrementBase Tariff FactorO&M - Manpower Cost FactorO&M - Energy Cost Factor

Parameter Value

Project IRR 5.68%

Project NPV @

WACC (Rs.Cr)-2,358

DSCR (Min) 0.45

DSCR (Average) 2.06

LLCR 1.67

PLCR 1.81

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Project Structure

BMRCLADB

Maintenance ContractorsConstruction Contractors

Construction

Contracts

Direct / Operation

and Maintenance

Contracts

ADB loan

AgreementTrust and retention A/C -SPV revenues

GoK support from non-project

related non tax funds

GOI &GOK

Commercial

Banks

loan

Agreement

JICA

JICA loanAgreement

Equity/ sub-debt

Agreement

GOK

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8

Lending Structure*

ADB

BMRCL

DebtServicing

LoanGoK Support - Shadow Fees

and security structure

(Triggers only when shortfall

in Net cash flow)

TRA

All revenues of BMRCL

First Charge

(after O&M exp.)

DSRA account

*Simplified version

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Thank You D T V Raghu Rama SwamyChief Executive OfficerInfrastructure Development Corporation

(Karnataka) Limited

Bangalore, India(+91) (80) 43448004

raghu@idfc.com