Working Capital Loan Facility

RNS Number : 8596B

Infrastructure India plc

09 April 2013

 



9 April 2013

Infrastructure India plc

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

Working Capital Loan Facility

Infrastructure India plc, the infrastructure fund investing directly into assets in India, is pleased to announce that, on 8 April 2013, it entered into a working capital loan facility agreement with GGIC, Ltd. (formerly Guggenheim Global Infrastructure Company Limited)("GGIC") for up to US$17 million (the "Facility").

Under the Facility the Company may request one or more loans (each a "Loan" and together the "Loans") in a number of advances of no less than US$4 million each. The proceeds of the Loans may be utilised to fund the costs and expenses associated with the management of IIP and its non-Indian subsidiaries, and to pay the interest and other expenses associated with the Facility. The Loans are available to the Company until 10 April 2016.

The Loans are repayable on 10 April 2017 and attract an interest rate of 7.5% per annum, payable semi-annually during the Facility period. An arrangement fee of US$170,000 is payable in respect of the Facility and an additional commitment fee, payable semi-annually in arrears, of 0.5% per annum is payable on the available, but undrawn, portion of the Facility. 

Related Party Transaction

GGIC is, directly and indirectly, interested in 51.17% 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 is a related party transaction pursuant to Rule 13 of the AIM Rules. The independent directors of IIP (the board excluding Tom Tribone, Sonny Lulla and Rob Venerus) consider, having consulted with Smith & Williamson Corporate Finance Limited in its capacity as the Company's nominated adviser, that the terms of the Loan are fair and reasonable insofar as the shareholders of IIP are concerned.

Commenting on the Facility, Sonny Lulla, IIP's Chief Executive, said:

"We are pleased to have secured this loan facility in what remains a difficult financing environment, underpinning the working capital position of the IIP Group for the foreseeable future. With this financial security, we are able to focus on developing our portfolio of assets in order to achieve the anticipated capital growth and start generating meaningful revenue income, without IIP needing to return to the capital markets."

Enquiries:

Infrastructure India plc	www.iiplc.com
Sonny Lulla	Via College Hill
Smith & Williamson Corporate Finance Limited	[phone]
Nominated Adviser & Joint Broker
Azhic Basirov / Siobhan Sergeant
Investec Bank plc	[phone]
Joint Broker
Jeremy Ellis / Tim Mitchell
College Hill	[phone]
Financial Public Relations
Paul Downes / Toby Bates

 

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