Loan Facility Update

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 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]

 

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