Reliance Infrastructure's sale of Delhi Agra toll road to Cube Highways and Infrastructure III Pte Ltd will be close by the end of August, the Anil Ambani-led company said on Thursday.
On March 14, Reliance Infrastructure had announced signing of a definitive binding agreement with Singapore-based Cube Highways and Infrastructure for its 100 per cent stake in the toll road.
Reliance Infrastructure will receive enterprise value of Rs 3,600 crore including equity of up to Rs 1,700 crore. The company will utilise 100 per cent of proceeds only for debt reduction.
With this single transaction of Delhi Agra toll road, the debt of Reliance Infrastructure will reduce by over 25 per cent to less than Rs 5,000 crore.
"This sale will significantly reduce the debt of Reliance Infrastructure on its path to becoming a zero debt company," said Executive Director and CEO Punit Garg.
"Reliance Infrastructure has once again proven its ability by efficiently operating the showpiece Indian infrastructure of the 180-km six lane Delhi Agra toll road," he said in a statement.
The company has already applied for commercial operations date to National Highways Authority of India (NHAI) for the project. Delhi Agra toll road collection period is until 2038, that is further 19 years to go.
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.
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