Unit Of Abu Dhabi Fund Inks Deal To Buy Indian Highway Project

A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) has entered into a binding deal with India’s Reliance Infrastructure (RInfra) to take over latter’s highway project, Delhi-Agra Toll Road Pvt Ltd.

The acquisition deal with Singapore-based Cube Highways and Infrastructure III Pte Ltd is pegged at $519 million.

“RInfra today announced the signing of Definitive Binding Agreement with Cube Highways and Infrastructure III Pte Ltd for the sale of its 100 per cent stake in Delhi-Agra (DA) Toll Road Private Limited,” the company said in a statement.

The acquisition deal between the ADIA subsidiary and Reliance Infra is subject to all mandatory government permissions and approvals in India.

Reliance Infrastructure’s special purpose vehicle Delhi-Agra Toll Road Private Limited operates the showpiece 180km long six-lane road that connects the national capital Delhi with Agra.

The project has witnessed a revenue growth of 25 percent in 2018.

The tolling operation for the heavily-trafficked project started in October 2012 and has a concession period until 2038.

The Anil Ambani group-promoted Reliance Infrastructure will use the proceeds from the stake sale in the Delhi-Agra Highway Project to reduce its debt.

After the completion of the transaction for Delhi-Agra Toll Road, the debt of Reliance Infrastructure will reduce by 25 percent to less than $720 million, the company said.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.

RECENT NEWS

Emicool Secures First-ever Green Financing To Boost Sustainable Growth

The liquidity generated will be strategically deployed to accelerate the company’s district cooling projects across t... Read more

UAEs Ruya Becomes First Global Islamic Bank To Offer Shariah-compliant Crypto Trading

Digital Islamic bank ruya teams up with Fuze to offer secure, ethical crypto investments aligned with Islamic financial... Read more

Startups In Abu Dhabis Hub71 Secured $2.17bn In Funding Last Year

Hub71 startups in Abu Dhabi saw massive increase in funding in 2024 as innovation economy thrives Read more

UAE Fintech Pay10 First To Launch On Central Banks Open Finance Framework

The company has acknowledged the Central Bank of the UAE's crucial role in facilitating a responsible and secure rollou... Read more

PayPal Expands In MEA Region With Its Newly Launched Hub In Dubai

Will serve 80 countries in Middle East and Africa from its Dubai Internet City hub; Has signed several deals with regio... Read more

New Board Certifies DMCC Tradeflow As Fully Shariah Compliant

Shariah Supervisory Board appointed to oversee Tradeflow’s Islamic finance offering; Certified fully-compliant with A... Read more