Reliance Infra Resolves ₹271 Crore Debt with Yes Bank

27 Nov 2024 , 12:37 PM

Reliance Infrastructure has issued a notification, on 27th Nov. 2024 that its wholly owned subsidiary JR Toll Road Private Limited (JRTR) had cleared the entire outstanding balance from the account of Yes Bank Limited (YBL).

Settlement agreement dated: 26th November, 2024 for approx. ₹271.18 crores including principal and accrued interest. Reliance Infrastructure which was the Corporate Guarantor for JRTR, stands relieved of liabilities towards this debt. It further ensured that the debt completely owed by JRTR was fully repaid to Yes Bank, thus freeing a considerable burden on the subsidiary’s books.

Reliance Infrastructure clarified that Yes Bank owns no shares in the company and is neither a related party nor associated with the promoter group. Debt settlement enabled JRTR to revert back to its core businesses and explore long-term opportunities for growth.

This settlement enhances Reliance Infrastructure’s financial position by mitigating potential risks tied to JRTR’s debt and eliminating the corporate guarantee obligation. The move highlights the company’s commitment to maintaining financial stability and safeguarding shareholder interests.

Additionally, on October 22, Reliance Infrastructure announced plans to establish India’s largest integrated facility for manufacturing explosives, ammunition, and small arms in Ratnagiri, Maharashtra. The project, headed by subsidiary Reliance Defence Ltd, will be based within Dhirubhai Ambani Defence City (DADC) of the Watad Industrial Area, in a massive 1,000-acre site.