IL&FS puts renewable assets on the block

28 November 2018 - 12:00 am UTC

Infrastructure Leasing & Financial Services Ltd (IL&FS) will soon invite Expressions of Interest (EoI) for selling a controlling stake in its renewable energy portfolio.

The new board of IL&FS, appointed by the federal government, has initiated the sale of the group’s renewable energy assets “in order to ascertain market interest, and to examine feasibility of maximization of value in an orderly and transparent manner,” the company said in a statement on Wednesday (28 November).

The EoIs will be published before 15 December, a source close to the transactions said.

The company’s renewable energy portfolio comprises operating wind power generating plants with aggregate capacity of 873.5MW and under construction wind projects of 104MW, the statement said.  

The portfolio also consists of 300MW solar projects under development by IL&FS on behalf of other corporates, the statement added.

The enterprise value of the wind energy assets could be in the region of INR 37bn (USD 524m) and INR 47bn (USD 665m), according to a banker. The enterprise value of the solar assets could be between INR 12bn and INR 15bn, he added.

The proposed sale may be carried out as a “basket or individually or in any combination thereof,” the statement said.

IL&FS, backed by Abu Dhabi Investment Authority (ADIA) and Japan’s Orix Corporation, is India’s largest private infrastructure financier and developer with total liabilities of INR 1trn (USD 13.5bn) as of 31 March. Since August, it has defaulted on multiple loan obligations. The asset sale is an integral part of its strategy to cut its debt.


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