IL&FS Sells 49 Per Cent Stake In Chinese Chongquing Yuhe Expressway To Address Rs 2,600 Crore Debt

The Infrastructure Leasing and Financial Services (IL&FS) has sold 49 per cent of its stakes in the Chongquing Yuhe Expressway to a fund that is co-owned by China Merchants and PingAn Insurance.

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 it stares at currently.

“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,” the infrastructure development and finance company revealed in an official statement.

The IL&FS held a 49 per cent stake in the concerned expressway through its Singapore-based subsidiary ITNL International Pte Ltd (IIPL), Economic Times reports.

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