IL&FS closes deal to transfer Moradabad Bareilly Expressway to newly formed InvIT

P. Manoj | | Updated on: Dec 25, 2021

This will be the first vehicle for resolving debt owed to lenders of ITNL and other group entities

Moradabad Bareilly Expressway Ltd (MBEL) has become the first road asset of Roadstar Infra Investment Trust (InvIT) promoted by IL&FS Transportation Networks Ltd (ITNL).

The final consideration for sale of shares is ₹576.77 crore and the adjusted final consideration for assignment of receivables is ₹14.26 crore, the company said in a statement.

The transaction has been closed and ITNL has received the final consideration of 5,91,04,536 units of ₹100 each issued by the InvIT and ₹59 in cash, and transferred the shares of MBEL to the account of Roadstar Infra Investment Trust on December 24, the company said.

Following the completion of the deal, MBEL has ceased to be a subsidiary of the company.

Lenders to benefit

IL&FS InvIT will be the first vehicle for resolving debt owed to lenders of ITNL and other group entities. It forms an essential part of the overall group resolution framework adopted by the new board of IL&FS.

Also read: What are the best InvITs, infrastructure stocks and funds for your portfolio?

IL&FS had previously said that the InvIT will have 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 Implementation Company Limited.

These six projects, run by special purpose vehicles (SPVs), will be transferred to the InvIT at an aggregate valuation of ₹9,214 crore, determined by an independent valuer appointed by SEBI InvIT Regulations.

On transfer to the InvIT, these six SPVs would move away from the debt servicing moratorium extended to IL&FS Group companies. They will start servicing their debt, resulting in the resolution of these SPVs.

State Bank of India, Punjab National Bank, Canara Bank, Bank of India, and Indian Overseas Bank are some of the key lenders to ITNL, a subsidiary of IL&FS, and will largely benefit from the formation of the InvIT.

Published on December 25, 2021
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