(Reuters) - Reliance Infrastructure Ltd said on Thursday it would sell a special purpose vehicle (SPV) in northern India for an enterprise value of 36.09 billion rupees ($518.9 million), which will help the company reduce its debt by 25 percent.
The decision is in line with the company’s strategy to monetize non-core business and aim to be debt-free by the end of the financial year, Reliance Infrastructure said in a statement.
Singapore-based Cube Highways and Infrastructure III Pvt Ltd will buy the SPV that operates a six-lane road connecting the national capital Delhi with Agra.
Cube Highways and Infrastructure is formed by global infrastructure fund – I Squared Capital and a unit of Abu Dhabi Investment Authority.
The entire proceeds from the sale will be used to reduce the company's debt to less than 50 billion rupees, the company said bit.ly/2UC6sya. Reliance Infrastructure had a debt of 69 billion rupees at the end of the September quarter.
Claims of 12 billion rupees to be filed by the SPV before the National Highways Authority of India will come directly to the company, Anil Ambani-controlled Reliance Infrastructure added.
Shares of Reliance Infrastructure traded 3 percent lower in a flat Mumbai market.
Reporting by Chandini Monnappa in Bengaluru; Editing by Subhranshu Sahu