Debt-laden Infrastructure Leasing and Financial Services has sold stake in waste manager IL&FS Environmental Infrastructure & Services and its five subsidiaries to EverEnviro Resource Management, owned by Green Growth Equity Fund.
GGEF is a climate fund anchored by the governments of India and the UK and managed by EverSource Capital, a 50:50 joint venture between Everstone Capital and European solar energy developer Lightsource BP.
IL&FS, as the promoter, held 97.54% of IL&FS Environmental. The balance was owned by IL&FS Employee Welfare Trust.
This sale will reduce debt by Rs 1,200 crore -- which is the combined debt of entities under IL&FS’s environment businesses.
In addition, around 4,000 employees, including consultants, have been transferred along with the businesses, resulting in annual savings of around Rs 50 crore to the IL&FS group.
IL&FS Environmental is a waste manager present across segments including construction and demolition, collection and transport and waste to energy. It manages over 8,400 tonnes of waste per day.
Its assets include a waste-to-energy plant at Ghazipur in Delhi.
With this deal, IL&FS has addressed nearly Rs 6,400 crore of debt since January this year.
In December 2020, VCCircle reported it is selling 49% stake in Chinese road builder Chongqing Yuhe Expressway to a fund managed by Ping An Insurance.
In January, IL&FS Solar Power cleared all its debt worth Rs 845 crore ($115.5 million).
IL&FS, in the midst of resolving debt of about Rs 99,000 crore ($13.8 billion), has been trying to sell several assets to repay obligations after multiple defaults led to a liquidity crunch in the non-banking financial sector.
Last month, it invited bids for Singaporean unit’s controlling stake in a Vietnamese joint venture.