Mumbai, June 11 (IANS): Mumbai Metro One (MMO), a subsidiary of Reliance Infrastructure, on Thursday said it has completed the re-financing of project borrowings of Rs.1,650 crore, achieving substantial benefits through extension of maturity and reduction of interest costs.

"With this re-financing, the final repayment of Rs.1,650 crore on the loans has been extended to the year 2037, almost 22 years from date, thereby enhancing financial flexibility," the company said in a statement.

The interest rate, according to the statement now stands reduced from 13 percent to 11.75 percent each year with the average maturity period of loans almost doubled to 14 years.

MMO is Reliance Infrastructure's Special Purpose Vehicle to develop, implement and operate Mumbai's first metro line, on a public-private partnership model.

"The re-financing brings about greater alignment of the debt repayment profile with the life of the concession period and the company's cash flows. We look forward to delivering increased value to the company's shareholders and more comfort and convenience to metro commuters," an MMO official said.

It completed the first year of its operation on June 8 this year boasting of 99 percent punctuality and zero cancellation in its services.