IL&FS sells stake in Chinese road asset to address Rs 2,600 cr debt

NEW DELHI: In a major step towards resolving its overall debt, IL&FS on Thursday announced completion of its 49 per cent stake sale in Chinese road asset, Chongqing Yuhe Expressway Co Ltd (CYEC), which would help the company to address debt of about Rs 2,600 crore. It sold the stake to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund (Tianjin) Co Ltd (PingAn), 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, IL&FS said in a statement. IL&FS has duly received Rs 1,035 crore ($141.3 million) in Singapore as part of this transaction. The consideration will be used to pay around $88 million of Bank of Baroda loans and the balance to meet IIPL liabilities, including the bondholders under IOPL. IL&FS Group held 49 per cent stake in CYEC through its step down Singapore-based subsidiary, ITNL International Pte Ltd (IIPL). The balance 51 per cent stake in CYEC is held by Chongqing Expressway Group (CEG). PingAn had bid at an aggregate equity valuation of $281 million for 100 per cent stake. (IANS)

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