IL&FS raises USD 80 mn from Chinese lender

Mumbai, Sep 13 (PTI) IL&FS today raised USD 80 millionfrom Industrial and Commercial Bank of China (ICBC) for itsflagship company in the surface transportation sector, IL&FSTransportation Networks Limited (ITNL). The external commercial borrowing (ECB) facility has beenraised for a tenor of six years, and will be utilised forfunding of infrastructure projects, the company said in astatement. This transaction marks the first ECB availed by the IL&FSGroup at an infrastructure holding company level and followsthe revision in RBI’s ECB regulations where companies in theinfrastructure sector are now allowed to raise ECBs with aminimum average maturity of five years, as against theprevious 10 year requirement. Last year, IL&FS had entered into a memorandum ofunderstanding with ICBC to facilitate co-operation in the areaof infrastructure financing in the country. The objective of the MoU was to build an alliance betweenthe two institutions and collaborate in the areas of lendingfor infrastructure facilities and projects, it said. ITNL is the largest private sector BOT road operator, witha portfolio of 14,680 lane kilometres and 31 road projectsspread across country. Incidentally, ITNL is also the first domestic corporate toissue Dimsum (Chinese) bonds and has raised an aggregate ofUSD 300 million through multiple issuances till date. PTI KDBEN NRBABMRDS