IL&FS sells 49% stake in Chinese road asset
ROADS & HIGHWAYS

IL&FS sells 49% stake in Chinese road asset

Debt-ridden Infrastructure Leasing and Financial Services (IL&FS) has completed the sale of 49% stake in its Chinese road asset, the Chongqing Yuhe Expressway Co Ltd (CYEC).

IL&FS sold the stake to China Merchants and PingAn Infrastructure phase 1 Equity Investment Fund (Tianjin) Co Ltd (PingAn), a fund jointly owned by China Merchants and PingAn Insurance, a release from IL&FS Group said.

The buyers have paid Rs 1,035 crore for the shares and have also assumed the debt worth Rs 1,600 crore that is related to this project. This will allow IL&FS to address dues amounting to Rs 2,600 crore that the company stares at currently.

The company told the media that it has received Rs 1,035 crore in Singapore as part of this stake sale transaction. The consideration amount will be used to pay around Rs 642 crore of Bank of Baroda loans and the balance to meet IIPL liabilities, including bondholders under ITNL Offshore PTE Ltd (IOPL), said IL&FS.

IL&FS held a 49% stake in the concerned expressway through its Singapore based subsidiary ITNL International Pte Ltd (UPL), according to media reports.

Earlier, retired Supreme Court justice DK Jain was tasked to supervise the resolution process of IL&FS. He approved the sale of assets back in December 2020, which enabled IL&FS to expedite its plan of generating revenues to pay its debt by selling off various projects.

Image Source


Also read: IL&FS set to sell Chinese road asset to PingAn Insurance

Debt-ridden Infrastructure Leasing and Financial Services (IL&FS) has completed the sale of 49% stake in its Chinese road asset, the Chongqing Yuhe Expressway Co Ltd (CYEC). IL&FS sold the stake to China Merchants and PingAn Infrastructure phase 1 Equity Investment Fund (Tianjin) Co Ltd (PingAn), a fund jointly owned by China Merchants and PingAn Insurance, a release from IL&FS Group said. The buyers have paid Rs 1,035 crore for the shares and have also assumed the debt worth Rs 1,600 crore that is related to this project. This will allow IL&FS to address dues amounting to Rs 2,600 crore that the company stares at currently. The company told the media that it has received Rs 1,035 crore in Singapore as part of this stake sale transaction. The consideration amount will be used to pay around Rs 642 crore of Bank of Baroda loans and the balance to meet IIPL liabilities, including bondholders under ITNL Offshore PTE Ltd (IOPL), said IL&FS. IL&FS held a 49% stake in the concerned expressway through its Singapore based subsidiary ITNL International Pte Ltd (UPL), according to media reports. Earlier, retired Supreme Court justice DK Jain was tasked to supervise the resolution process of IL&FS. He approved the sale of assets back in December 2020, which enabled IL&FS to expedite its plan of generating revenues to pay its debt by selling off various projects. Image Source Also read: IL&FS set to sell Chinese road asset to PingAn Insurance

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000