R-Infra defaults on Rs 1.33-bn NCDs, to pay after Mumbai distribution deal

Anil Ambani-led Reliance Infrastructure (R-Infra) has missed payments for its non-convertible debentures (NCDs) worth Rs 1.33 billion. In a statement to the BSE, the company said these payments will be made from the Mumbai distribution business sale proceeds.   

"The entire proceeds of the sale transaction have been earmarked for the payment of various debt, including final redemption of Series 3 NCDs amounting to Rs 133.38 crore (Rs 1.3338 billion) due on 20 August 2018," the company said in a statement to the exchanges. "The company expects to make these payments in the next few days from the proceeds of the aforesaid sale transaction, and the debenture holders have duly been informed in this regard," the statement added. 

Adani Transmission has a definitive binding agreement signed for 100 per cent stake purchase of R-Infra's Mumbai Power Business in a deal valued at Rs 121 billion and regulatory assets approved so far of Rs 11.50 billion. The deal was signed in December last year. In its statement to BSE, R-Infra on Thursday said most of the relevant approvals for the deal are in place and it expects to close the deal in the next few days. Top company officials had earlier stated the deal will help the company turn debt-free at the standalone level.