Reliance Infrastructure signs agreement with Cube Highways for stake sale in Delhi-Agra toll road

Reliance Infrastructure Limited (RIL) has signed a definitive binding agreement with Cube Highways and Infrastructure Private Limited for the sale of 100 per cent stake in Delhi-Agra Toll Road Private Limited. The total deal enterprise value is over Rs 36 billion. In addition, National Highways Authority of India claims of Rs 12 billion to be filed by Delhi-Agra Toll Road Private Limited will flow directly to RIL. RIL will utilise the proceeds of this transaction entirely to reduce its debt. After the completion of the transaction for Delhi-Agra Toll Road, RIL’s debt will be reduced by 25 per cent to only under Rs 50 billion. The SPV DA Toll Road Private Limited operates the six-lane, 180 km road that connects Delhi and Agra on National Highway-2. The project has witnessed revenue growth of 25 per cent during 2017-18. The tolling operation for the project started in October 2012 and has a concession period till 2038.