IL&FS Transportation Networks raises $113M through Yuan-denominated bond issue

IL&FS Transportation Networks Ltd, through its wholly-owned overseas subsidiary ITNL Offshore Two Pte Ltd, has raised RMB 690 million ($111 million or Rs 696 crore) through unsecured notes to investors in Asia, the company said in a stock market disclosure.

The bonds have been listed on the Singapore Stock Exchange and are due in 2018, it said.

It is not the first time it has tapped the yuan-denominated bond market. In April 2012 it had raised RMB 630 million (around $100 million back then) through a bond issue listed on Hong Kong Stock Exchange. It was the first such listing by an Indian firm on the Hong Kong Stock Exchange.

IL&FS Transportation Networks, a subsidiary of IL&FS, develops, operates and maintains national and state highways, roads (including urban roads), flyovers and bridges in Andhra Pradesh, Delhi, Gujarat, Maharashtra, Karnataka, Uttar Pradesh, Kerala, Jharkhand and Rajasthan. It got listed in March 2010.

The firm counts Standard Chartered IL&FS Asia Infrastructure Growth Fund and Bessemer Venture Partners as investors. It also counts Norwegian sovereign wealth fund Government Pension Fund Global as a shareholder.

Last year, it raised $166 million through a qualified institutional placement. IL&FS Transportation Networks also bought some stake in Srinagar Sonmarg Tunnelway Ltd, promoted by highway developer Soma Enterprise Ltd (Soma). Post which, it hiked its holding to 49 per cent from 14.5 per cent in the company.

(Edited by Joby Puthuparampil Johnson)

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