Reliance Infrastructure
The proceeds from the sale will be used to reduce its debt. Credit: Larisa Koshkina from Pixabay.

Reliance Infrastructure has completed the divestment of its Delhi – Agra (DA) toll road in India to Singapore-based Cube Highways and Infrastructure for Rs36bn ($670m).

In a regulatory filing, Reliance Infrastructure disclosed the sale of its 100% stake in the Delhi – Agra toll road project.

PTI reported that the firms signed a definitive binding agreement in March 2019.

The proceeds from the sale will be used in reducing its debt, reported Financial Express.

Reliance Infrastructure has cut down its total debt liabilities by 20% with this deal proceeds, from Rs175bn ($3.24bn) to Rs140bn ($2.59bn).

Cube Highways and Infrastructure III has been set up by Global Infrastructure Fund I Squared Capital.

It is a completely owned subsidiary of Abu Dhabi Investment Authority.

Reliance Infrastructure Limited is engaged in developing infrastructure projects through several special purpose vehicles (SPVs) in sectors such as roads, power, rail, and defence.

In November, Indian Minister for Road and Transport Nitin Gadkari laid the foundation stone of 16 highway projects, with a total length of more than 500km, in the state of Uttar Pradesh.

The highway projects are being built with an investment of approximately Rs75bn ($1bn).

During the same month, L&T Construction secured a contract to build India’s longest road bridge, which will connect the states of Assam and Meghalaya across the River Brahmaputra.

Spanning 19km, the bridge will join Dhubri in Assam to Phulbari in Meghalaya.