RInfra in talks with Cube Highways, Brookfield, Apollo Global for sale of 5 road assets

By: |
July 14, 2021 9:15 AM

Together, the five roads are expected to fetch around Rs 3,250 crore, which will help the company reduce its consolidated debt of Rs 14,260 crore as of March 2021.

While CDPQ and Brookfield declined to comment, an email to Apollo Global and message to Cube Highways did not elicit any response.While CDPQ and Brookfield declined to comment, an email to Apollo Global and message to Cube Highways did not elicit any response.(Image: REUTERS)

After successfully completing the Rs 3,600-crore sale of DA Toll Road to Cube Highways and Infrastructure in January, Reliance Infrastructure is back in the market to monetise five other operational road assets.

According to sources, the company is in talks with global investment players such as Cube Highways, backed by iSquared Capital; Brookfield; Apollo Global; and CDPQ (Caisse de dépôt et placement du Québec) for the sale of DS Toll Road, NK Toll Road and SU Toll Road in Tamil Nadu, JR Toll Road in Rajasthan, and the 140-km Pune-Satara highway in Maharashtra.

Together, the five roads are expected to fetch around Rs 3,250 crore, which will help the company reduce its consolidated debt of Rs 14,260 crore as of March 2021.

The 283-km toll road assets in Tamil Nadu and Rajasthan have a balance concession period of up to 12 years. Cube Highways has shown interest in these projects with an offer of Rs 1,430 crore. The Pune-Satara highway is being discussed with Brookfield, Apollo Global Investment Partner, and CDPQ and is likely to fetch around Rs 1,800 crore, sources said.

While CDPQ and Brookfield declined to comment, an email to Apollo Global and message to Cube Highways did not elicit any response.

In January, RInfra completed the sale of DA Toll Road to Cube Highways and Infrastructure III for an enterprise value of over Rs 3,600 crore. The proceeds were utilised to bring down the total debt liabilities of Relinace Infra by around 20% at that time.

The company is on a debt reduction drive and aims to be debt-free by March 2022. Recently, it announced fundraising of Rs 550 crore from the promoter group and VSFI Holding, an affiliate of Varde Investment Partners. The funds raised will be utilised for long-term resources, for general corporate purposes to fund future growth and to reduce debt.

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