Business

Reliance Infra gets nod to sell Delhi-Agra road project

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Deal with CUBE III valued at ₹3,600 cr.

Reliance Infrastructure has received in-principle approval from the National Highways Authority of India (NHAI) to sell the 180-km six-lane Delhi-Agra (DA) Toll Road Project to Cube Highways and Infrastructure III Pte. Ltd. (CUBE III) for an enterprise value (EV) of ₹3,600 crore.

CUBE III, owned by a Singapore-based Global Infrastructure Fund, I Squared Capital, and a wholly owned subsidiary of the Abu Dhabi Investment Authority, will acquire ₹1,900 crore debt of Reliance Infrastructure and pay ₹1,700 crore to the company for the equity part. The deal, to be to closed by the end of this month, is likely to make the Reliance Infrastructure account regular for lenders as the firm had defaulted on a payment of ₹1,050 crore.

According to the company, the entire proceeds from the deal will be used by Reliance Infrastructure to pay lenders and reduce the debt of the company.

This is in line with the commitment made by Reliance Infrastructure to its 16 lenders on July 6, 2019, when the lenders signed an Inter Creditor Agreement for resolution of debt and granted a moratorium to the company on the interest and principal payments.

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Printable version | Jan 27, 2020 1:23:59 AM | https://www.thehindu.com/business/r-infra-gets-nod-to-sell-delhi-agra-road-project/article30526704.ece

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