Cube Highways to buy Delhi-agra toll road
RINFRA’S DEAL WITH CUBE HIGHWAYS FOR AN ENTERPRISE VALUE ₹3,609 CRORE WILL HELP THE COMPANY CUT ITS DEBT BY 25%
BENGALURU: Reliance Infrastructure Ltd (Rinfra) said on Thursday it would sell a special purpose vehicle (SPV) in northern India for an enterprise value of ₹3,609 crore ($518.9 million), which will help the company reduce its debt by 25%.
The decision is in line with the company’s strategy to monetize non-core business and aim to be debt-free by the end of the financial year, Reliance Infrastructure said in a statement.
Singapore-based Cube Highways and Infrastructure III Pvt. Ltd will buy the Delhi-agra (DA) Toll Road Pvt. Ltd that operates a six-lane road connecting the national capital Delhi with Agra.
Cube Highways and Infra- structure is formed by global infrastructure fund – I Squared Capital and a unit of Abu Dhabi Investment Authority.
The entire proceeds from the sale will be used to reduce the company’s debt to less than ₹5,000 crore, the company said.
Reliance Infrastructure had a debt of ₹6,900 crore at the end of the September quarter.
Claims of ₹1,200 crore to be filed by the special purpose vehicle before the National Highways Authority of India (NHAI) will come directly to the company,
Reliance I nfrastructure added. Shares of Reliance Infrastructure traded 3% lower in a flat Mumbai market.