Extension of Working Capital Loan Facility

RNS Number : 5970H

Infrastructure India plc

08 June 2017

 

8 June 2017

Infrastructure India plc

("IIP" or the "Company")

Extension of Working Capital Loan Facility

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 "Loan") provided to the Company in April 2013 by GGIC, Ltd ("GGIC") such that the maturity date of the Loan has been extended by 30 days to 10 July 2017 (the "Loan Extension").

The Loan carries an interest rate of 7.5% per annum and was originally due to be repaid by the Company on 10 April 2017. In April 2017 the Company and GGIC agreed an extension to the Loan which extended the term of the Loan to 9 June 2017 as the Company does not currently have sufficient cash resources to repay the Loan.

The interest payment which would have been due under the Loan, as amended, on 9 June 2017 has been deferred to 10 July 2017. The other terms of the Loan are unchanged.

The Loan Extension will enable the Company to continue to progress its ongoing discussions with GGIC and its affiliates in relation to financing arrangements which would enable the Company to repay the Loan, provide additional working capital and construction capital to Distribution Logistics Infrastructure Limited and to meet the group's general working capital needs (the "Financing").

The Company is currently targeting completion of the Financing no later than 30 June 2017.

Related Party Transaction

GGIC is, directly and indirectly, interested in 75.4% of the Company's issued share capital. Under the AIM Rules for Companies ("AIM Rules"), GGIC is, therefore, deemed to be related party of the Company and the Loan Extension is a related party transaction 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 are fair and reasonable insofar as the shareholders of IIP are concerned.

A further announcement will be made, as appropriate, in due course.

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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