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IL&FS: IL&FS sells Chinese road assets, cuts Rs 2.6k cr debt

(This story initially appeared in on Apr 02, 2021)

Mumbai: In a transfer that has led to the decision of a further Rs 2,600-crore debt, IL&FS accomplished the sale of its 49% stake in its Chinese language highway asset Chongqing Yuhe Expressway (CYEC). The stake was bought to China Retailers & PingAn Infrastructure Part 1 Fairness Funding Fund (Tianjin) — a fund collectively owned by PingAn Insurance coverage and China Retailers.

That is the biggest transaction for IL&FS for the reason that sale of its wind vitality belongings to Orix. The transaction concerned a mix of money fee and debt switch. IL&FS has already obtained Rs 1,035 crore in Singapore as a part of the deal.

One of many large gainers from the deal can be the abroad unit of Financial institution of Baroda, which can obtain $88 million. IL&FS Group held a 49% stake in CYEC by its step-down Singapore-based subsidiary ITNL Worldwide (IIPL). The steadiness 51% is held by Chongqing Expressway Group (CEG).

In January 2021, the IL&FS administration had mentioned it has addressed roughly Rs 32,000 crore of mixture debt. Since then, it recovered Rs 1,925 crore owed to it for Gurgaon Metro following a beneficial court docket order. One other Rs 1,500 crore is anticipated to be recovered from the sale of its headquarters at Bandra Kurla Complicated the place a number of buyers together with non-public fairness funds have proven curiosity.

IL&FS mentioned in a press release that it maintains its estimates of addressing mixture debt of over Rs 56,000 crore by FY22, out of an general debt of over Rs 99,000 crore (as of October 2018).

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