IL&FS to launch Phase I of its Infrastructure Investment Trust with six highway projects
Troubled Infrastructure Leasing and Financial Services (IL&FS) has got the nod to launch the first phase of its infrastructure investment trust InvIT. It was approved by the National Company Law Tribunal (NCLT) on 30 October.
In a statement issued by the company, the company said that InvIT, named Roadstar Infra Investment Trust, will get six road projects under the first phase.
These will be Barwa Adda Expressway, Baleshwar Kharagpur Expressway, Sikar Bikaner Highway, East Hyderabad Expressway, Moradabad Bareilly Expressway and Jharkhand Road Projects Implementation Company.
The Special Purpose Vehicles (SPVs) for these six road projects will be transferred to InvIT at a total valuation of Rs 9,214 crore.
The statement further said that this value will be determined by an independent valuer appointed in accordance with the InvIT regulations of the Securities and Exchange Board of India (SEBI).
On shifting to InvIT, these six SPVs will do away with the debt service moratorium extended to IL&FS group companies and start servicing their loans, resulting in resolution, the release said.
IL&FS proposes to resolve over Rs 16,000 crore in phases through InvITs. It will add an additional five road properties in Phase 2, upon receipt of applicable approvals, it said.
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