Sekura Roads Limited (SRL) can be lead investors in the Infrastructure Investment Fund (InvIT) which includes six road projects to be launched by IL&FS.

Sekura Roads is backed by the Edelweiss Infrastructure Yield Plus Fund (EIYP), India’s largest Tier 1 alternative infrastructure investment fund.

The National Corporations Law Tribunal (NCLT) has approved IL&FS to launch InvIT with six road projects – Barwa Adda Expressway Limited, Baleshwar Kharagpur Expressway Limited, Sikar Bikaner Highway Limited, East Hyderabad Expressway Limited, Moradabad Bareilly Expressway Limited and Jharkhand Road Projects Company Limited.

IL&FS said in a statement that these road projects will be transferred to the newly formed Roadstar Infra Investment Trust under InvIT Phase One – basic approvals from the authority and lenders.

These six road projects, Special Purpose Vehicles (SPV) will be transferred to InvIT at a total valuation of Rs 9,214 crore – determined by an independent appraiser appointed by SEBI InvIT regulations.

Upon converting to InvIT, these six SPCs will move away from extended debt service deferrals to IL&FS Group companies. They will begin servicing their debts, leading to the dissolution of these special purpose companies.

State Bank of India, Punjab National Bank, Canara Bank, Bank of India and Indian Overseas Bank are some of the major lenders to IL&FS Transportation Networks Limited (ITNL), a subsidiary of IL&FS, and will benefit greatly from the formation of InvIT.

Sekura Roads showed initial interest in becoming a major investor in InvIT, a person familiar with the development said.

IL&FS InvIT will be the first vehicle to settle debts to ITNL lenders and other group entities. It forms an essential part of the comprehensive group resolution framework adopted by the new IL&FS Board of Directors.

Being one of the largest InvIT in the road sector, the proposed InvIT could become a strong player in the infrastructure in the country, with a suitable management and supervision team. InvIT can act as a growth tool and add value to the initial unit owners who will be the group’s lenders.

IL&FS is proposing to process over Rs 16,000 crore through InvIT in phases. This approval by NCLT for Phase I is part of the said process. IL&FS said it will add five additional road assets in Phase Two upon receipt of applicable approvals.

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