Snapshot
Roadstar Infra Investment Trust, an InvIT (Infrastructure Investment Trust) promoted by IL&FS Transportation Networks (ITNL), has commenced its business operations with acquisition of first road asset — Moradabad-Bareilly Expressway Ltd.
IL&FS group proposes to address more than ₹16,000 crore in debt through InvIT in phases.
Roadstar Infra Investment Trust, an InvIT (Infrastructure Investment Trust) promoted by IL&FS Transportation Networks (ITNL), has commenced business operations with acquisition of first road asset — Moradabad-Bareilly Expressway Ltd.
IL&FS Transportation Networks (ITNL) is the subsidiary of debt-ridden Infrastructure Leasing and Financial Services (IL&FS).
For the Moradabad-Bareilly Expressway Ltd transaction, the final consideration for sale of shares is Rs 576.77 crore and adjusted final consideration for assignment of receivables is Rs 14.26 crore, ITNL said in a stock exchange filing.
The company has received the final consideration in the form of 5,91,04,536 units of ₹100 apiece issued by the InvIT and transferred the shares of Moradabad Bareilly Expressway to the account of Roadstar InvIT on 24 December.
Six road projects – Barwa Adda Expressway, Baleshwar Kharagpur Expressway, Sikar Bikaner Highway, East Hyderabad Expressway, Moradabad Bareilly Expressway and Jharkhand Road Projects Implementation Company- were transferred by ITNL to the InvIT to enable monetisation.
The special purpose vehicles of these six road projects were 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.
IL&FS group proposes to address more than ₹16,000 crore in debt through InvIT in phases.
On transfer to the InvIT, these six SPVs would move away from debt servicing moratorium extended to IL&FS Group companies and will start servicing their debt, resulting in resolution of these SPVs.
The InvIT will help in monetising road assets and help resolve debt owed to lenders of ITNL and other group entities. It forms an important part of the overall group resolution framework adopted by the new board.
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 ITNL and will largely benefit by the formation of this InvIT.