Reliance Infrastructure has completed the stake sale of Delhi-Agra (DA) Toll road to Cube Highways and Infrastructure III Pte Limited for an enterprise value of Rs 3,600 crore.

With this transaction, DA Toll Road Private Limited has ceased to be the subsidiary of Reliance Infrastructure from December 31, the company said in a filing to the exchanges.

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 deal was announced in March 2019 with the signing of a binding agreement between RInfra and Cube Highways and Infrastructure III Pte Ltd and has now been completed with transfer of shares of the DA Toll Road and receipt of sale consideration, the company said.

The entire sale proceeds will be utilised for debt reduction. RInfra has reduced its total debt liabilities by 20 per cent from the deal proceeds, the company said. With this transaction, RInfra will receive enterprise value of Rs 3,600 crore including equity of up to Rs 1,700 crore, which it has said will be used to repay its debt.

The remaining Rs 1,900 crore will be transferred to the books of Singapore-based Cube Highways, who bought the Delhi-Agra toll road.

In September, Reliance Infrastructure had received an in-principal approval from the National Highways Authority of India (NHAI) for Harmonious Substitution in the Delhi-Agra (DA) Toll Road Project. This was on the back of RInfra lenders signing an inter-creditor agreement (ICA) to resolve its debt.

An ICA provides the ground rules for the finalisation and implementation of a resolution plan (RP) for borrowers with credit facilities from more than one lender.

RInfra’s lenders have all signed up to resolve its debt, on the back of RBI circular on Prudential Framework for Resolution of Stressed Assets.

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