DA toll road sale to help Rel Infra reduce debt by 25 pc

Rs3600 deal with Cube Highways to close by Aug end

MUMBAI: The Rs3600 crore that Reliance infrastructure is expected to raise from the sale of Delhi-Agra toll road to Cube Highways and Infrastructure III Pte Ltd, will be used to reduce the company’s debt by 25 per cent.

The Rs3600 crore that Reliance infrastructure is expected to raise from the sale of Delhi-Agra toll road to Cube Highways and Infrastructure III Pte Ltd, will be used to reduce the company’s debt by 25 per cent.

Reliance infrastructure’s sale of Delhi Agra (DA) toll road to Cube Highways will be completed by the end of August 2019, according to a company statement.

Reliance Infrastructure said it would utilise 100 per cent of proceeds only for debt reduction. “With this single transaction of DA toll road, debt of Reliance Infrastructure will reduce by over 25 per cent to less than Rs5,000 crore,” the statement said further.

Reliance Infrastructure had signed a binding Share Purchase agreement with Cube Highways for its 100 per cent stake in DA toll road. Reliance Infrastructure will receive Enterprise Value of Rs3,600 crore including equity of up to Rs1,700 crore.

Reliance Infrastructure has already applied for Commercial Operations Date (COD) to National Highways Authority of India (NHAI) for the project. DA toll road collection period is until 2038 i.e. further 19 years to go.

Punit Garg, the ED and CEO of Reliance Infrastructure, said, “This sale will significantly reduce the debt of Reliance Infrastructure on its path to becoming a Zero Debt company. Reliance Infrastructure has once again proven its ability by efficiently operating the showpiece Indian infrastructure of the 180-km six-lane DA toll road.”

Cube Highways and Infrastructure III Pte Ltd is a Singapore-based company formed by Global Infrastructure Fund – I Squared Capital and a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

Reliance Infrastructure is one of the largest infrastructure companies, focused on developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as Power, Roads and Metro Rail in the Infrastructure space and the Defence sector.

Reliance Infrastructure Ltd through its SPVs has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai on build, own, operate and transfer (BOOT) basis; and eleven road projects with total length of about 1,000 kms on build, operate and transfer (BOT) basis. Reliance Infrastructure Ltd is also a leading utility company having presence across the value chain of power businesses i.e. Generation, Transmission and Distribution.

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