Infrastructure India reaches $105m loan agreement – Infrastructure India (IIP) has agreed a conditional proposed financing worth up to $105m with IIP Bridge Facility, an affiliate of GGIC. The loan is expected to provide capital to allow distribution logistics infrastructure private (DLI), a subsidiary of IIP, to complete, commission and ramp up all of its existing terminal facilities through to completion, to meet other DLI borrower requirements and provide additional working capital for both DLI and the trust.
IIP has been going through a testing time, its share price is down 61% over the year, which we looked at earlier this year. Click here to read more on this story. The 61% includes the 124% bounce in the shares today following the loan announcement.
Key points from the fine print
- The loan consists of a secured four-year term and carries an interest rate of 15%. It is secured on all assets of IIP, including 100% of the issued share capital of DLI
- $8.7m to be drawn down by the group on 5 April 2019 and $96.3m to be made conditionally available to the group in one or more additional loan(s)
- The loan is expected to provide sufficient capital for IIP’s largest asset, DLI, which is not yet cash generative, to complete its existing terminal network and ramp up operations and will provide DLI with the opportunity to seek to capture the significant growth opportunities in the logistics sector
DLI is a supply chain transportation and container infrastructure company headquartered in Bangalore and Gurgaon with a strong presence in central, northern and southern India. The company provides a broad range of logistics services including rail freight, trucking, handling, customs clearing and bonded warehousing with terminals located in the strategic locations of Nagpur, Bangalore, Palwal (in the National Capital Region) and Chennai. DLI is the largest asset in IIP’s portfolio and one of the largest privately-owned Indian logistics businesses.
As at 30 September 2018, IIP notes in the loan announcement that DLI had an unaudited carrying value, based on business case assumptions as at that time, of £168.7 million.
IIP: Infrastructure India reaches $105m loan agreement