on Apr 02, 2021)Mumbai: In a move that has led to the resolution of an additional Rs 2,600-crore debt, IL&FS completed the sale of its 49% stake in its Chinese road asset Chongqing Yuhe Expressway (CYEC). The stake was sold to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund (Tianjin) — a fund jointly owned by PingAn Insurance and China Merchants.
This is the largest transaction for IL&FS since the sale of its wind energy assets to Orix. The transaction involved a combination of cash payment and debt transfer. IL&FS has already received Rs 1,035 crore in Singapore as part of the deal.
One of the big gainers from the deal would be the overseas unit of Bank of Baroda, which will receive $88 million. IL&FS Group held a 49% stake in CYEC through its step-down Singapore-based subsidiary ITNL International (IIPL). The balance 51% is held by Chongqing Expressway Group (CEG).
In January 2021, the IL&FS management had said it has addressed approximately Rs 32,000 crore of aggregate debt. Since then, it recovered Rs 1,925 crore owed to it for Gurgaon Metro following a favourable court order. Another Rs 1,500 crore is expected to be recovered from the sale of its headquarters at Bandra Kurla Complex where several investors including private equity funds have shown interest.
IL&FS said in a statement that it maintains its estimates of addressing aggregate debt of over Rs 56,000 crore by FY22, out of an overall debt of over Rs 99,000 crore (as of October 2018).
