Extension of Existing Loan and Bridging Loan

RNS Number : 7995J

Infrastructure India plc

30 June 2017

 

30 June 2017

Infrastructure India plc

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

Extension of Working Capital Loan and US$8.0 million Bridging Loan

Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, announces that it has agreed a further extension of the US$17 million working capital loan facility (the "Existing Loan") provided to the Company in April 2013 by GGIC, Ltd ("GGIC") and that it has agreed a US$8.0 million unsecured bridging loan facility (the "Bridging Loan") with Cedar Valley Financial ("Cedar Valley"), an affiliate of GGIC.

The extension of the Existing Loan and the Bridging Loan will enable the Company to continue to progress its ongoing discussions with GGIC and its affiliates in relation to the provision of new funding which would enable the Company to repay the Existing Loan and the Bridging Loan, provide additional working capital and construction capital to Distribution Logistics Infrastructure Limited, a key subsidiary of the Company, and to meet the group's general working capital needs.

Extension of Existing Loan

The Company announces that it has agreed a further extension of the Existing Loan which was previously provided to the Company by GGIC such that the maturity date of the Existing Loan has been extended from 10 July 2017 to 30 September 2017 (the "Loan Extension").  The Existing Loan is fully drawn down and carries an interest rate of 7.5% per annum.

The interest payment which would have been due under the Existing Loan on 10 July 2017, together with the additional interest accrued from then until 30 September 2017, has been deferred to 30 September 2017.

There are no arrangement or commitment fees payable by the Company in relation to the Loan Extension.

Bridging Loan

The Company also announces that it has entered into an US$8.0 million unsecured bridging loan facility with Cedar Valley. The Bridging Loan, which carries an interest rate of 8.0% per annum (payable in cash on maturity), is available to the Company in a single draw down on 30 June 2017 and will be used to provide additional working capital to the Group.

The Bridging Loan matures on the earlier of: (i) any time after 45 days from the date of the Bridging Loan agreement, on demand by Cedar Valley; and (ii) 30 September 2017.

There are no arrangement or commitment fees payable by the Company in relation to the Bridging Loan.

Related Party Transactions

GGIC is, directly and indirectly, interested in 75.4% of the Company's issued share capital and Cedar Valley is an affiliate of GGIC. Under the AIM Rules for Companies ("AIM Rules"), GGIC and Cedar Valley are, therefore, deemed to be related parties of the Company and the Loan Extension and the Bridging Loan are related party transactions pursuant to Rule 13 of the AIM Rules. The independent directors of IIP, M.S. Ramachandran and Timothy Walker, consider, having consulted with Smith & Williamson Corporate Finance Limited in its capacity as the Company's nominated adviser, that the terms of the Loan Extension and the Bridging Loan are fair and reasonable insofar as the shareholders of IIP are concerned.

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

Infrastructure India plc        Sonny Lulla	www.iiplc.com Via Cubitt Consulting
Smith & Williamson Corporate Finance Limited Nominated Adviser & Joint Broker Azhic Basirov / Ben Jeynes	[phone]
Nplus1 Singer Advisory LLP Joint Broker Gillian Martin - Corporate Finance James Waterlow - Investment Fund Sales	[phone]
Cubitt Consulting Limited Financial Public Relations Simon Brocklebank-Fowler	[phone]

 

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