REG - Infrastructure India - Loan Facility Update

Infrastructure IndiaAnnouncement

17/04/2023 07:00

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RNS Number : 3216W  Infrastructure India plc  17 April 2023

17 April 2023

 

Infrastructure India plc

("IIP", the "Company" and together with its subsidiaries the "Group")

 

Increase of Term Loan and extension of maturity

Related Party Transaction

 

Infrastructure India plc, an AIM quoted infrastructure fund investing directly
into assets in India, announces that the Group has agreed a US$8 million
increase (the "Facility Increase") to the US$111 million term loan with IIP
Bridge Facility LLC ("IIP Bridge"), an affiliate of GGIC, Ltd ("GGIC"), as
announced by the Company on 2 April 2019 (the "Facility") and 31 August 2022.
Following the Facility Increase, the principal of the loan will be US$119
million, and the amount of interest accrued will be approximately US$70.9
million.

 

IIP also announces that it has agreed an extension to the maturity date
("Maturity Extension") of the Facility from 1 May 2023 to 31 May 2023. Save
for the Facility Increase set out above, all other terms and conditions of the
Facility remain the same.

 

The Facility, a secure term loan to IIP's wholly owned Mauritian subsidiary,
Infrastructure India Holdco, carries an interest rate of 15% per annum,
calculated in a manner that yields a 15% IRR for the Lender and is secured on
all assets of IIP Holdco, including 100% of the issued share capital of
Distribution Logistics Infrastructure India, DLI's Mauritian parent company.

 

As announced on 28 February 2022 and periodically thereafter, IIP is engaged
in discussions with several third parties (including advanced discussions with
Pristine Logistics & Infraprojects Ltd) regarding the potential sale of
its largest asset, Distribution Logistics Infrastructure Limited, although no
definitive agreements have been signed. Both the Facility Increase and the
Maturity Extension enable IIP to meet immediate and longstanding creditors in
India, as well as providing some working capital while the Company works
towards completing a transaction.

 

Related Party Transaction

 

IIP Bridge Facility LLC is an affiliate of GGIC, which is, directly and
indirectly, interested in 75.4% of the Company's issued share capital. Under
the AIM Rules for Companies ("AIM Rules") IIP Bridge Facility LLC and GGIC are
each, therefore, deemed to be related parties of the Company and the Facility
Increase and the Maturity Extension is a related party transaction pursuant to
Rule 13 of the AIM Rules.

 

The independent directors of IIP, being M.S. Ramachandran and Graham Smith,
consider, having consulted with Strand Hanson Limited in its capacity as the
Company's nominated adviser, that the terms of the Facility Increase and the
Maturity Extension are fair and reasonable insofar as the shareholders of IIP
are concerned.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended.

Enquiries:

 Infrastructure India plc                 www.iiplc.com (http://www.iiplc.com/)

 Sonny Lulla                              Via Novella

 Strand Hanson Limited                    +44 (0) 20 7409 3494

 Nominated Adviser

 James Spinney / James Dance

 Singer Capital Markets                   +44 (0) 20 7496 3000

 Broker

 James Maxwell - Corporate Finance

 James Waterlow - Investment Fund Sales

 Novella                                  +44 (0) 20 3151 7008

 Financial PR

 Tim Robertson / Safia Colebrook

 

 

 

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