Reliance Infrastructure Limited has signed a Definitive Binding Agreement with Cube Highways and Infrastructure III for the sale of its 100 percent stake in Delhi-Agra (DA) Toll Road Private Limited. Cube Highways and Infrastructure III 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 roughly $517 million.
In addition, NHAI claims of $173 million will be filed by DA Toll Road Pvt. Ltd. and will flow directly to Reliance Infrastructure. Reliance Infrastructure will utilize 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 percent to only less than $720 million.
The transaction is in line with Reliance Infrastructure’s strategic plan of monetizing non-core business and focus on major growth areas like engineering & 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-kilometers long six-lane road that connects the national capital Delhi with Agra on National Highway (NH) 2. The profitable project has witnessed a revenue growth of 25 percent in fiscal year 2018. The tolling operation for the heavily-trafficked project started in October 2012 and has a concession period till 2038.