IL&FS gets NCLT approval for phase 1 InvIT

Representative Image (Reuters)

Debt-ridden Infrastructure Leasing and Financial Services (IL&FS) in a release said it has received approval from National Company Law Tribunal (NCLT) for launching phase I of its Infrastructure Investment Trust (InvIT) on October 30.

The new InvIT, Roadstar Infra Investment Trust, will get six road projects under Phase I — Barwa Adda Expressway, Baleshwar Kharagpur Expressway, Sikar Bikaner Highway, East Hyderabad Expressway, Moradabad Bareilly Expressway and Jharkhand Road Projects Implementation Company, the group release added.

These six road projects' special purpose vehicles (SPVs) will be transferred to the InvIT at an aggregate valuation of Rs 9,214 crore — determined by an independent valuer appointed in accordance with the Securities and Exchange Board’s InvIT regulations, it added.

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

IL&FS proposes to address more than Rs 16,000 crore through InvIT in phases. It will be adding additional five road assets in phase 2, on receipt of applicable approvals, it said.

State Bank of India (SBI), Punjab National Bank (PNB), Canara Bank, Bank of India (BoI) and Indian Overseas Bank are some of the key lenders to IL&FS Transportation Networks (ITNL), a subsidiary of IL&FS, and will largely benefit by the formation of this InvIT, the release said.