DLI Update - Restructuring of Loans

RNS Number : 6593V

Infrastructure India plc

30 October 2014

 



30 October 2014

Infrastructure India plc

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

DLI Update - Restructuring of Loans

Infrastructure India plc, the infrastructure fund investing directly into assets in India, is pleased to announce that, on 29 October 2014, Distribution Logistics Infrastructure Limited ("DLI" and formerly named Vikram Logistic and Maritime Services Limited) entered into a Master Restructuring Agreement (the "Agreement") with the lending banks which make up its two lending consortia.

The Agreement follows the Company's successful US$102 million equity placing in August 2014 and provides a moratorium on principal payments until January 2016, reducing the overall combined interest rate to 12 per cent (previously more than 15.5 per cent), and extends the tenor. The final repayment is now scheduled in 2027 - providing a seven year extension over the previous final payment date in 2020. During the moratorium period interest payable will be converted into a Funded Interest Term Loan arranged by the lenders.

The aggregate amount outstanding under the loan agreements is INR 5,017 million (approximately £51 million), with INR 785 million remaining undisbursed (approximately £8.0 million).

Under the terms of the Agreement, DLI is to be refunded all principal and interest payments made after an agreed cut off date of 1 February 2014 ("Cut Off Date"). These refunds total INR 680 million (approximately £6.9 million).

The Agreement provides DLI with an additional working capital facility of INR 187 million (approximately £1.9 million) over a rolling 12-month period (the "Working Capital Facility").  The working capital facility currently carries an interest rate, calculated at a rate of 1.75 per cent over a floating base rate, of 12 per cent.

The improved borrowing terms available to DLI under the Agreement, together with the refund of interest and principal from the Cut Off Date will provide DLI with additional flexibility in responding to customer demand by accelerating the implementation of Private Freight Terminals, liquid storage and bulk handling facilities.

The Company looks forward to providing shareholders with further asset updates, as appropriate, in due course.

Enquiries:

Infrastructure India plc        Sonny Lulla	www.iiplc.com Via Instinctif Partners
Smith & Williamson Corporate Finance Limited Nominated Adviser & Joint Broker Azhic Basirov / Ben Jeynes	[phone]
Nplus1 Singer Advisory LLP Joint Broker Gillian Martin - Corporate Finance James Waterlow - Investment Fund Sales	[phone]
Instinctif Partners Financial Public Relations Toby Bates	[phone]

 

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