Comments
The IL&FS Group has raised an external commercial borrowing (ECB) of $80 million from Industrial and Commercial Bank of China (ICBC) for its flagship company in the surface transportation sector, IL&FS Transportation Networks Ltd (ITNL).
“This ECB funding is a landmark transaction and IL&FS is pleased to have partnered ICBC for funding the group’s infrastructure project requirement. IL&FS looks forward to building this relationship with ICBC through more such initiatives in the future,” said Ramesh C Bawa, Managing Director and CEO of IL&FS Financial Services.
The ECB facility, raised for a tenor of six years, will be utilised for funding infrastructure projects. IL&FS Financial Services Ltd (IFIN) was the advisor to the transaction and the ECB was managed through its Hong Kong office.
IL&FS Group has availed of this ECB at an infrastructure holding company level following revision in RBI’s ECB regulations, where companies in the infrastructure sector are now allowed to raise ECBs with a minimum average maturity of five years, as against the previous 10-year requirement.
Last year, in 2015, IL&FS had entered into a Memorandum of Understanding with ICBC to facilitate co-operation in the area of infrastructure financing in India. The objective of the MoU was to build an alliance between the two institutions and to collaborate in the areas of lending for infrastructure facilities and projects.
IL&FS and ICBC continue to engaged in opportunities that will enhance the Indo-China business traction in various areas of infrastructure development in the country.
“One of the focus areas for ICBC group has been the infrastructure space & IL&FS is a pioneer in infrastructure development. ICBC’s branch presence in India since 2011 has enabled value addition in the domestic market for both Indian and Chinese corporates. ICBC is among the biggest banks globally, and its capabilities enable corporates to achieve their growth plans,” said S R Venkatesh, Managing Director & Head of Corporate Banking, ICBC India.
ITNL is the largest private sector BOT road operator in India, with a portfolio of 14,680 lane km and 31 road projects spread across India. ITNL is also the first Indian corporate to issue Dimsum (CNH) bonds and has raised an aggregate of $300 million through multiple issuances till date.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.