A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) has entered into a binding deal with India’s Reliance Infrastructure (RInfra) to take over latter’s highway project, Delhi-Agra Toll Road Pvt Ltd.

The acquisition deal with Singapore-based Cube Highways and Infrastructure III Pte Ltd is pegged at $519 million.

“RInfra today announced the signing of Definitive Binding Agreement with Cube Highways and Infrastructure III Pte Ltd for the sale of its 100 per cent stake in Delhi-Agra (DA) Toll Road Private Limited,” the company said in a statement.

The acquisition deal between the ADIA subsidiary and Reliance Infra is subject to all mandatory government permissions and approvals in India.

Reliance Infrastructure’s special purpose vehicle Delhi-Agra Toll Road Private Limited operates the showpiece 180km long six-lane road that connects the national capital Delhi with Agra.

The project has witnessed a revenue growth of 25 percent in 2018.

The tolling operation for the heavily-trafficked project started in October 2012 and has a concession period until 2038.

The Anil Ambani group-promoted Reliance Infrastructure will use the proceeds from the stake sale in the Delhi-Agra Highway Project to reduce its debt.

After the completion of the transaction for Delhi-Agra Toll Road, the debt of Reliance Infrastructure will reduce by 25 percent to less than $720 million, the company said.