IL&FS finalises InvIT structure for road assets

Reportedly, Infrastructure Leasing & Financial Services [IL&FS] Limited has finalised the InvIT structure for its road assets in order to resolve its debt of about Rs 150 billion. IL&FS has set up Roadstar Infra Private Limited as a new subsidiary of IL&FS Transportation Networks India Limited (ITNL) to act as a sponsor to the proposed InvIT. Besides, North Karnataka Expressway Limited (NKEL) has been appointed as the investment manager to the proposed InvIT. As per reports, ITNL has infused fresh capital of Rs 750 million in the sponsor entity post receipt of the requisite approvals in order to meet SEBI’s InvIT norm of a Rs 1 billion net worth. In addition, NKEL will be transferred by ITNL to Roadstar Infra Private Limited. IL&FS has received in-principle approval from SEBI for registering the InvIT and is likely to approach the board shortly for seeking final registration of the trust. In the first phase, the InvIT will hold seven SPVs or road assets with a total debt of Rs 90 billion. Subsequently, in the second phase, another four SPVs, with a total debt of over Rs 57 billion, are planned to be transferred to the InvIT. ITNL’s committee of creditors has already provided in-principle approval for the formation of and transfer of assets to the proposed InvIT.

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