Global port operator DP World Ltd has approached the Indian-government-backed infrastructure bank and National Stock Exchange-listed Axis Bank for a Rs 35 billion ($422.23 million) loan to build a terminal in Gujarat, Economic Times newspaper reported, citing multiple sources.

DP Work is building a 2.19 million twenty-foot equivalent units (TEUs) capacity mega-container terminal, estimated to cost Rs 42.44 billion at Tuna Tekra in Deendayal Port in Gujarat.

The National Bank for Financing Infrastructure and Development (NaBFID) and Axis Bank will each extend a term loan facility of Rs 17.5 billion to the project.

Axis Bank has approved another Rs 1.4 billion as a guarantee facility and Rs 1.5 billion as a hedge facility, enabling DP World to achieve financial closure for the project, the report said, citing sources.

DP World placed the highest royalty of Rs 6,500 per TEU to emerge as the successful bidder for the project.

“DP World has received confirmation from NaBFID and Axis Bank to fund the project,” said an official with the Ministry of Ports, Shipping and Waterways, which controls the Deendayal Port Authority.

“DP World will be signing the loan agreement with the banks soon,” he stated.

(Editing by Seban Scaria seban.scaria@lseg.com )