Infrastructure India plc Trading Statement (9276H)
09 Agosto 2021 - 1:00AM
UK Regulatory
TIDMIIP TIDMTTM
RNS Number : 9276H
Infrastructure India plc
09 August 2021
9 August 2021
Infrastructure India plc
("IIP", the "Company and together with its subsidiaries the
"Group")
Trading and Liquidity Update
Infrastructure India plc, an AIM quoted infrastructure fund
investing directly into assets in India, provides the following
update on trading and company liquidity.
The Covid-19 pandemic has had an unprecedented impact on
businesses in India and IIP's largest asset, Distribution Logistics
Infrastructure Limited ("DLI"), has sustained delays in
construction and completion schedules, delays with regulatory
approvals due to government bottlenecks and irregular and lumpy
volumes as a result of 15 months of severe market turbulence. The
most significant challenge for construction, particularly during
the second wave of infections this year, was the reduced
availability of labour.
Liquidity Update
DLI has optimised its cost base and restructured its loans with
improved borrowing terms, as announced in June 2021. For some time,
the Company has also been in discussions with a third party with
regard to a wider restructuring, which would have provided
additional liquidity to DLI and the IIP Group, and those
discussions have now ceased. In the interim period, IIP has had to
provide unforeseen financial support and funds designated for
capital expenditure had to be diverted to working capital and debt
servicing needs, which would have been replaced by the envisaged
transaction.
As at 31 July 2021, the IIP Group had unaudited cash and cash
equivalents available of $4 million, including certain cash
receivables. This amounts to approximately 5-7 months of runway for
the Group.
The Board is currently evaluating options and is exploring
alternative sources of financing with third parties and further
announcements will be made as and when appropriate.
Trading Update
The first calendar quarter of 2021 started well, with a rebound
in consumer demand and an overall pick up in economic activity.
However, a resurgence of Covid-19 hindered this recovery and
although the disruption was less severe than 2020 due to localised
and less stringent restrictions, the impact on demand and disrupted
industrial activity - particularly due to a shortage of labour -
was marked.
Work at the terminal in Bangalore was completed during the
fiscal year, but customs approval remains outstanding due to
current Government backlogs. Nagpur Phase II work received final
regulatory clearance from Indian Railways in calendar Q4 2020, but
market share has fluctuated due to aggressive discounting amongst
operators. To counter this, DLI has entered into strategic
agreements with third party terminals. Work in the NCR and at
Chennai have been on hold due to local restrictions and
construction activity at Chennai is expected to commence once
financing is in place.
Throughout the period, DLI focused on optimising its cost base
and restructured its loans with improved borrowing terms, including
a moratorium on interest for 13 months from March 2021 and a
moratorium on principal for 24 months from December 2020, as well
as reductions in interest rate from 12% to 10%.
IIP's hydro assets performed as expected. There was some
disruption to administrative functions and delays to PPA
negotiations and offtake meetings for India Hydropower Development
Company ("IHDC"), but overall the impact of Covid-19 has been
limited. The impact at Indian Energy Limited ("IEL") was greater in
2020, with one wind farm project, Theni, experiencing lower
consumption of power during lockdown. IEL responded by diversifying
its customer base.
Further updates will be provided as and when appropriate and in
the upcoming Annual Results.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
Enquiries:
Infrastructure India plc www.iiplc.com
Sonny Lulla Via Novella
Strand Hanson Limited
Nominated Adviser
James Spinney / James Dance +44 (0) 20 7409 3494
Singer Capital Markets
Broker
James Maxwell - Corporate Finance
James Waterlow - Investment Fund Sales +44 (0) 20 7496 3000
Novella
Financial PR
Tim Robertson / Fergus Young +44 (0) 20 3151 7008
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END
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