Sadbhav Infrastructure raises Rs1,141cr for debt repayment and funding ongoing HAM projects; Stock ends 6% up

Sabhav states that these long term funding and sale of units will help the Company to inter alia meet repayment of all its existing short term debt obligations and to fund the ongoing portfolio of HAM.

May 07, 2021 4:29 IST | India Infoline News Service

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Sadbhav Infrastructure Project Limited has entered into the Debenture Trust Deed to raise Rs700 crores from the investors led by Allianz Global Investors (Allianz GI) and AMP Capital (the “Investors”) out of which a sum of Rs550 crores has already been funded by the Investors. The funding has been structured with flexible repayment obligation linked to monetization of the SPVs of SIPL within a tenure of 48 months to 63 months.

Vasistha C. Patel, Managing Director of the Company said: - “We are thankful to Allianz GI and AMP Capital for reposing their trust and confidence in SIPL by making investment into the Company by way of NCDs. We are excited to partner with them as this investment will infuse liquidity into the Company for funding our growth and will also provide resilience and necessary financial strength to our Balance Sheet over the long term."

Further, Sadbhav Infra has sold 7.0% of units in IndInfravit Trust to CPP Investments for a total consideration of Rs441cr. SIPL continues to hold 3.0% of units in IndInfravit Trust and will continue as one of the Project Managers for IndInfravit Trust.

Patel said, "We are grateful to CPP Investments for buying 7% of units in IndInfravit Trust. The above NCD issuance and sale of units in IndInfravit will help SIPL inter alia to repay its existing short term debt obligations and also to fund the ongoing portfolio of Hybrid Annuity Model (HAM) road assets of the Company.”

Sabhav states that these long term funding and sale of units will help the Company to inter alia meet repayment of all its existing short term debt obligations and to fund the ongoing portfolio of Hybrid Annuity Model (HAM) road assets of the Company. Apart from Allianz GI and AMP who are long term investors, the Company will not have any third party debt except for non-fund based working capital lenders.

Also, the company is under active discussions with IndInfravit Trust for completing the sale of Ahmedabad Ring Road Infrastructure Limited. The Company further intends to monetize the HAM assets at an appropriate time in line with the Company’s policy of churning out assets.

On Sensex, Sabhav Infra finished at Rs21 per piece up by 6%.