Reliance Infrastructure Ltd. has signed an inter-creditor agreement (ICA) with 16 lenders, getting a 180-day standstill from the banks.
This comes when Anil Ambani’s Reliance Group is planning to raise as much as ₹21,000 crore by monetising its assets starting from roads, to its corporate office, radio unit to holdings in the financial services business to reduce debt.
As per the RBI Circular of June 7, 2019, the resolution plan of Reliance Infrastructure is to be implemented within 180 days.
“Reliance Infrastructure is confident of implementing its resolution plan well before the 180-day deadline based on advanced progress of its various asset monetisation initiatives,” said the company in a statement.
As per the RBI framework, resolution plan has to be agreed to by 75% of the lenders by value of debt and 60% by number of lenders.
Reliance Infrastructure had already announced the sale of the Delhi-Agra toll road for an enterprise value of ₹3,600 crore.
With this transaction, the company’s debt would decline more than 25% to just over ₹4,000 crore.
Reliance Infrastructure also plans to monetise its 7 lakh sq. ft Reliance Centre in Santacruz by way of long-term lease. Reliance Infrastructure’s subsidiary Reliance Power, had recast loans of ₹2,430 crore ($347 million) from U.S. Exim Bank for its Samalkot project.
While the repayment schedule, which was amortised, had been converted into bullet payments, the final loan maturity had been extended to June 2022 at an interest rate of 2.65% per annum, said Reliance Power in a filing with the exchanges.
Reliance Power, with an operating portfolio of 5,945 MW, is in advanced stages of development of the Bangladesh project and is relocating its Samalkot modules to that country. Shares of Reliance Infrastructure rose 10.98% to ₹51.05 on the BSE in a flat market on Thursday, valuing the company at ₹1,342.56 crore.
