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RInfra’s sale of Delhi-Agra toll road receives NHAI approval

Reliance Infrastructure will use 100 per cent of the proceeds from the sale to pay lenders .

ET Bureau|
Last Updated: Jan 10, 2020, 09.54 AM IST
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Infrastructure
The deal was struck at an enterprise value of ₹3,600 crore of which Cube Highways will pay ₹1,700 crore as equity consideration to Reliance Infrastructure.
Reliance Infrastructure has received in-principle approval from National Highways Authority of India (NHAI) for the sale of its Delhi-Agra (DA) toll road to a Singapore-based investor, according to a company official.

The Anil Ambani company had signed an agreement for the sale of the 180-kilometre toll road with Cube Highways and Infrastructure III, a company in which Singapore-based I Squared Capital and Abu Dhabi Investment Authority are co-investors.

The deal was struck at an enterprise value of ₹3,600 crore of which Cube Highways will pay ₹1,700 crore as equity consideration to Reliance Infrastructure and absorb ₹1,900 crore of debt on the books of the special purpose vehicle that owns the toll road.

Reliance Infrastructure will use 100% of the proceeds from the sale to pay lenders and reduce the debt of the company, according to the official.

“The sale of DA toll road is a first of many liquidity events to move the company towards becoming debt-free in 2020. We are grateful to all our creditors and various stakeholders for having reposed their faith in the business and management team”, a company spokesperson said.

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