Update on Debt Facility and Disposal

Infrastructure India plc

29 February 2024

 

29 February 2024

Infrastructure India plc

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

 DLI Disposal and Debt Facilities Update

Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, provides updates in respect of the potential disposal of the Group's interest in 99.99% of Distribution Logistics Infrastructure Private Limited ("DLI") and its Debt Facilities (as defined below) .

Potential DLI Disposal Update

Further to the announcement on 15 February 2024, the Company is in early discussions with a third party with regard to the proposed sale of DLI and is evaluating the potential transaction and related timelines, although there can be no guarantee that discussions will lead to definitive agreements for the sale of DLI. Further announcements will be made in due course.

Debt Facilities Update

On 15 January 2024, IIP notified the extension of the maturity date for the Debt Facilities to 29 February 2024. Recent maturity date extensions agreed with the Debt Facilities lenders ("Lenders") had been related to the expected timetable for the completion of the disposal of DLI, which was terminated on 15 February 2024.

IIP is in discussions with the Lenders with regard to a further extension to the maturity date of the Debt Facilities and the principal lender has agreed to an extension until 15 May 2024, with documentation expected to be finalised shortly. The Company's expectation of timelines in respect of the potential DLI transaction is relevant to these discussions.

A further announcement will be made in due course.

Information on the Debt Facilities

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.

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.

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Enquiries:

Infrastructure India plc Sonny Lulla	www.iiplc.com Via Novella
Strand Hanson Limited Nominated Adviser James Dance / Richard Johnson	[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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