Shares of Reliance Infrastructure
climbed 12% on the BSE after the company’s 16 lenders signed the Inter-Creditor Agreement (ICA).
As per the RBI Circular of June 7, 2019, 100% of its lenders have signed the ICA for the resolution of Reliance Infrastructure’s debt. Reliance Infrastructure has now achieved standstill for 180 days as per the ICA.
According to the RBI Circular, the Resolution Plan of Reliance Infrastructure is to be implemented within 180 days. Reliance Infrastructure is confident of implementing its Resolution Plan well before the 180-days deadline based on advanced progress of its various asset monetisation initiatives.
As per the RBI framework, Resolution Plan has to be agreed to by 75% of the lenders by value of debt and 60% by number of Lenders. Reliance Infrastructure has already announced the sale of Delhi-Agra Toll Road for Enterprise Value of Rs3,600cr. With this single transaction, the debt of Reliance Infrastructure will reduce by over 25% to just over Rs4,000cr.
Reliance Infrastructure also plans to monetise its marquee 7 lakh sq. ft. Reliance Center in Santacruz by way of a long-term lease. The company aims to be zero debt in 2020.
Reliance Infrastructure Ltd is currently trading at Rs52.10, up by Rs6.1 or 13.26% from its previous closing of Rs46 on the BSE. The scrip opened at Rs46.15 and has touched a high and low of Rs53.25 and Rs45.95 respectively.