REG - Infrastructure India - Update on Debt Facilities

Infrastructure IndiaAnnouncement

04/03/2024 14:45

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RNS Number : 5109F  Infrastructure India plc  04 March 2024

4 March 2024

 

Infrastructure India plc

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

 

 Debt Facilities Update

Infrastructure India plc, an AIM quoted infrastructure fund investing directly
into assets in India, announces that the documentation to extend the maturity
of its Debt Facilities ("Maturity Extensions") has been finalised.

 

On 29 February 2024, IIP announced that it had agreed a maturity extension
with the principal lender until 15 May 2024, with documentation to be
finalised. The Company now confirms that it has completed the documentation to
extend the maturity of all the debt facilities to that date.

 

The Debt Facilities include the term loan provided by IIP Bridge Facility LLC
(the "Term Loan"), the working capital loan provided by GGIC, Ltd. (the
"Working Capital Loan") and the bridging loan provided by Cedar Valley
Financial (the "Bridging Loan" and, together with the Term Loan and the
Working Capital Loan, the "Debt Facilities").

 

The Term Loan is a US$119 million principal secured facility provided to IIP's
wholly owned Mauritian subsidiary, Infrastructure India Holdco, originally
announced in April 2019. The loan 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 Infrastructure India Holdco, including 100% of the issued share
capital of Distribution Logistics Infrastructure India, DLI's parent company.
The current amount of interest accrued is approximately US$95million.

 

The unsecured Working Capital Loan was originally provided to the Group in
April 2013 by GGIC, Ltd. in an amount of US$17 million and increased
to US$21.5 million in September 2017. The Working Capital Loan carried an
interest rate of 7.5% per annum on its principal amount. The Group and GGIC,
Ltd. agreed to increase its interest rate to 15% per annum from 1 April
2019. The current amount of interest accrued is approximately US$31 million.

 

The unsecured Bridging Loan was originally provided to the Group in June 2017
by Cedar Valley Financial and was subsequently increased in multiple tranches
to US$64.1 million in March 2019.  The Bridging Loan carried an interest
rate of 12.0% per annum on its principal amount. The Group and Cedar Valley
Financial previously agreed to increase its interest rate to 15% per annum
from 1 April 2019. The current amount of interest accrued is approximately
US$63 million.

 

Related Party Transaction

 

IIP Bridge Facility LLC and Cedar Valley Financial are affiliates of GGIC,
Ltd., which is, directly and indirectly, interested in 75.4% of the Company's
issued share capital. Under the AIM Rules for Companies (the "AIM Rules"), IIP
Bridge Facility LLC, Cedar Valley Financial and GGIC, Ltd. are each,
therefore, deemed to be related parties of the Company and the Maturity
Extensions are related party transactions 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 Maturity Extensions 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.

 

 

- Ends -

 

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 Dance / Richard Johnson

 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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