IL&FS raises USD 80 mn from Chinese lender

IL&FS today raised USD 80 million from Industrial and Commercial Bank of China (ICBC) for its flagship company in the surface transportation sector, IL&FS Transportation Networks Limited (ITNL).
The external commercial borrowing (ECB) facility has been raised for a tenor of six years, and will be utilised for funding of infrastructure projects, the company said in a statement.
This transaction marks the first ECB availed by the IL&FS Group at an infrastructure holding company level and follows the revision in RBI's ECB regulations where companies in the infrastructure sector are now allowed to raise ECBs with a minimum average maturity of five years, as against the previous 10 year requirement.

Last year, IL&FS had entered into a memorandum of understanding with ICBC to facilitate co-operation in the area of infrastructure financing in the country.
The objective of the MoU was to build an alliance between the two institutions and collaborate in the areas of lending for infrastructure facilities and projects, it said.
ITNL is the largest private sector BOT road operator, with a portfolio of 14,680 lane kilometres and 31 road projects spread across country.
Incidentally, ITNL is also the first domestic corporate to issue Dimsum (Chinese) bonds and has raised an aggregate of USD 300 million through multiple issuances till date.