Anil Ambani-led Reliance Infrastructure announced today that its sale of the Delhi-Agra toll road to Singapore-based Cube Highways and Infrastructure III Pte Ltd will be finalised by the end of August.
Debt-ridden Reliance Infrastructure had announced the signing of a definitive binding agreement with Cube Highways and Infrastructure for a 100 per cent stake in the toll road in March this year.
The deal is valued at SGD705.28 million (INR3,600 crore), including equity of up to SGD333.16 million (INR1,700 crore). Reliance will utilise all of the proceeds from the sale to reduce their debt by over 25 per cent and bring it down to less than SGD979.9 million (INR5,000 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.
The Delhi Agra toll road collection period is until 2038.
Singapore’s Cube Highways is a company formed by global infrastructure fund I Squared Capital and a wholly-owned subsidiary of the Abu Dhabi Investment Authority.