IL&FS on Wednesday announced completion of transfer of two more road special purpose vehicles (SPVs) to Invit at an enterprise value (EV) of Rs 979 crore. IL&FS InVit now has a total of four road SPVs at an aggregate EV of Rs 5,274 crore. Hazaribagh Ranchi Expressway Ltd (HREL) and Thiruvananthapuram Road Development Company Ltd (TRDCL) both transferred to Roadstar Infra Investment Trust (InvIT) at an enterprise value of Rs 979 crore.
The company's board approved the transfer of these two assets under Invit earlier this month.
Senior Secured lenders of the both the assets - HREL and TRDCL - with combined debt of over Rs 630 crore will achieve 100 percent recovery through restructuring of their debt under Invit.
Some of the senior secured lenders of these two projects include: Punjab National Bank, Union Bank, Indian Overseas Bank, Deutsche Bank AG, JP Morgan and L&T Infra Credit. Group creditors (IFIN, ITNL, IL&FS) will receive InvIT units as settlement of their dues, which will subsequently be transferred to the lenders of the group creditors as a resolution of their debt
Roadstar Invit already has two assets – Moradabad Bareilly Expressway Ltd (MBEL) and Sikar Bikaner Highway Ltd (SBHL) - under its fold that were transferred at an EV of 4,295 crore earlier this year. The cumulative enterprise value of these four assets transferred to the InvIT till date stands is Rs 5,274 crore.
HREL is a BOT Annuity projects involving four-laning of over 73 km of Hazaribagh- Ranchi stretch of NH33 in the states of Jharkhand with concession upto FY2028. TRDCL is a BOT Annuity project involving Improvement of 43 km of city road in Thiruvananthapuram, Kerala, with concession upto FY2032.
The total of nine road SPVs are expected to be transferred to Invit as per the resolution framework. The valuation of the Invit, post transfer of these SPVs, is expected to be around Rs 13,000 crore and will address total debt of over Rs 6,800 across these nine SPVs.
The new Board proposes to list the Invit after completion of transfers of all planned road SPVs.
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