Rinfra to sell Delhi-Agra toll way to Singapore firm for Rs3,600 cr
18 March 2019
Reliance Infrastructure Ltd said on Thursday it would sell a special purpose vehicle (SPV) that runs the Delhi-Agra Toll way for an enterprise value of Rs3,609 crore, which will help the company reduce its debt by 25 per cent.
Rinfra also announced the signing of definitive binding agreement with Cube Highways and Infrastructure III Pte Ltd for the sale of its 100 per cent stake in Delhi-Agra (DA) Toll Road Private Limited.
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.
The total deal enterprise value is over Rs3,600 crore. In addition, NHAI claims of Rs1,200 crore to be filed by DA Toll Road Pvt Ltd will flow directly to Reliance Infrastructure.
Reliance Infrastructure will utilise the proceeds of this transaction entirely to reduce its debt.
After the completion of the transaction for Delhi-Agra Toll Road, the debt of Reliance Infrastructure will reduce by 25 per cent to only less than Rs5,000 crore.
The transaction is in line with Reliance Infrastructure’s strategic plan of monetising non-core business and focus on major growth areas like engineering and construction (E&C) business.
The transaction is subject to all requisite permissions and approvals.
Reliance Infrastructure’s special purpose vehicle (SPV) DA Toll Road Private Limited operates the showpiece 180-km long six-lane road that connects the national capital Delhi with Agra on National Highway (NH) 2. The profitable project has witnessed impressive revenue growth of 25 per cent in FY18. The tolling operation for the heavily-trafficked project started in October 2012 and has a concession period till 2038.
Reliance Infrastructure Ltd is one of the largest infrastructure companies, 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 is a major player in providing engineering and construction (E&C) services for developing power, infrastructure, metro and road projects.
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 of electricity.