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RInfra to sell entire stake in Delhi-Agra Toll Roadway for Rs 3,600 crore

RInfra said it will utilise the proceeds of this transaction entirely to reduce its debt

Press Trust of India  |  New Delhi 

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Ltd Thursday said it will sell its entire stake in Toll Roadway to Singapore-based for Rs 3,600 crore, following which the Anil Ambani led company's debt will be reduced by 25 per cent to less than Rs 5,000 crore.

(RInfra) has entered into a pact with in this regard.

and is a Singapore-based company formed by global infrastructure fund - and a wholly-owned subsidiary of the

The transaction is in line with Reliance Infrastructure's strategic plan of monetising non-core business and focus on major growth areas like engineering & construction (E&C) business.

today announced the signing of Definitive Binding Agreement with Cube Highways and for the sale of its 100 per cent stake in (DA) Toll Road Private Limited, the company said in a statement.

"The total deal enterprise value is over Rs 3,600 crore. In addition, NHAI claims of Rs 1,200 crore to be filed by will flow directly to Reliance Infrastructure," the company added.

said, it will utilise the proceeds of this transaction entirely to reduce its debt.

"After the completion of the transaction for Toll Road, the debt of will reduce by 25 per cent to only less than Rs 5,000 crore," the company said.

The transaction is subject to all requisite permissions and approvals, it added.

Reliance Infrastructure's special purpose vehicle (SPV) operates the 180-km long six-lane road that connects the national capital with Agra on (NH) 2.

"The profitable project has witnessed impressive revenue growth of 25 per cent in FY18," the company said.

The tolling operation for the heavily-trafficked project started in October 2012 and has a concession period till 2038.

is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as power, roads and metro rail in the infrastructure space and the defence sector.

Also, it is a major player in providing Engineering and Construction (E&C) services for developing power, infrastructure, metro and road projects.

The company through its SPVs has executed a portfolio of infrastructure projects such as a metro rail project in on build, own, operate and transfer (BOOT) basis; and eleven road projects with total length of about 1,000 kms on build, operate and transfer (BOT) basis.

First Published: Thu, March 14 2019. 14:45 IST
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