Extension of Term Loan

RNS Number : 7688X

Infrastructure India plc

31 August 2022

 

31 August 2022

Infrastructure India plc

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

Extension of Term Loan

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$6 million increase to the US$105 million term loan with IIP Bridge Facility LLC, an affiliate of GGIC, Ltd ("GGIC"), as announced by the Company on 2 April 2019 (the "Facility Extension"). Following the Facility Extension, the principal of the loan will be US$111 million, and the amount of interest accrued will be approximately US$56.4 million. All other terms and conditions of the facility remain the same, including the maturity date of 1 April 2023.

The Facility, a secured 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.

Distribution Logistics Infrastructure Private Limited ("DLI"), IIP's largest asset, has faced increasing liquidity constraints due to growing restricted funds requirements in-country which has adversely impacted on DLI's operations . Accordingly, the extension funds received by the Company will be utilised primarily to meet urgent operational overheads at DLI as well as Group working capital needs. DLI is a supply chain transportation and container infrastructure company headquartered in Bangalore and Gurgaon with a material presence in central, northern and southern India.

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 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 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 Sonny Lulla	www.iiplc.com Via Novella
Strand Hanson Limited Nominated Adviser James Spinney / James Dance	[phone]
Singer Capital Markets Broker James Maxwell - Corporate Finance James Waterlow - Investment Fund Sales	[phone]
Novella Financial PR Tim Robertson / Safia Colebrook	[phone]

 

END

 

 

MSCBKDBNCBKKDFN