Reliance Infra to use Mumbai power biz sale proceeds to clear Rs 670 cr debt

Reliance Infrastructure today said entire proceeds from the sale of its Mumbai Power Business will be used to clear debt worth about Rs 670 crore which was due to be paid by July 27.

"The entire proceeds of the sale transaction has been duly agreed by the lenders to be earmarked for the payment of the various debt including final redemption of Series 13A and Series 5 non convertible debentures amounting to Rs 54.90 crore and Rs 615.71 crore due on 26 July 2018 and 27 July 2018 respectively," the company said in a regulatory filing.

Reliance Infrastructure further said it expects to make these payments in early August, 2018 from the proceeds of the aforesaid sale transaction, and the debenture holders have duly been informed in this regard.

Reliance Infrastructure Limited had entered into binding agreements with Adani Transmission Limited on December 21, 2017 for sale of Mumbai Power Business. The total consideration for the transaction is Rs, 18,800 crore, and the proceeds are to be used entirely for debt reduction.