AgenciesDebt-laden Infrastructure Leasing and Financial Services (IL&FS) has completed the sale of its 49% stake in a Chinese expressway project, that will help the company address debt worth Rs 2,600 crore.
I&FS sold the stake in Chongqing Yuhe Expressway Co to a fund jointly owned by PingAn Insurance and China Merchants for Rs 1,035 crore. The acquirer has also taken over the debt related to the project worth Rs 1,600 crore.
“IL&FS has duly received Rs 1,035 crore ($ 141.3 million) in Singapore as part of this stake sale transaction. The consideration will be used to pay approximately $ 88 million of Bank of Baroda Loans and the balance to meet IIPL liabilities, including bondholders under IOPL,” IL&FS said in a statement.
ITNL Offshore PTE Ltd (IOPL) and ITNL International Pte Ltd (IIPL) are two Singapore based subsidiaries of IL&FS Transportation Networks, a majority owned subsidiary of IL&FS. IL&FS Group held the 49% stake in the Chineses expressway through IIPL, while the balance was held by Chongqing Expressway Group.
PingAn had bid at an aggregate equity valuation of $281 million for 100% in the expressway asset.
In December, Supreme Court Justice (Retd) DK Jain had given approval for the sale of the asset. He has been appointed for the supervision of the resolution process of the company.
IL&FS has been selling off projects as a part of an ambitious plan to raise funds to repay debt.
I&FS sold the stake in Chongqing Yuhe Expressway Co to a fund jointly owned by PingAn Insurance and China Merchants for Rs 1,035 crore. The acquirer has also taken over the debt related to the project worth Rs 1,600 crore.
“IL&FS has duly received Rs 1,035 crore ($ 141.3 million) in Singapore as part of this stake sale transaction. The consideration will be used to pay approximately $ 88 million of Bank of Baroda Loans and the balance to meet IIPL liabilities, including bondholders under IOPL,” IL&FS said in a statement.
ITNL Offshore PTE Ltd (IOPL) and ITNL International Pte Ltd (IIPL) are two Singapore based subsidiaries of IL&FS Transportation Networks, a majority owned subsidiary of IL&FS. IL&FS Group held the 49% stake in the Chineses expressway through IIPL, while the balance was held by Chongqing Expressway Group.
PingAn had bid at an aggregate equity valuation of $281 million for 100% in the expressway asset.
In December, Supreme Court Justice (Retd) DK Jain had given approval for the sale of the asset. He has been appointed for the supervision of the resolution process of the company.
IL&FS has been selling off projects as a part of an ambitious plan to raise funds to repay debt.
( Originally published on Apr 01, 2021 )
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