IL&FS subsidiary IFIN to sell external corporate loan book of Rs 5000 cr

Infrastructure Leasing & Financial Services Limited’s(IL&FS) wholly-owned subsidiary IFIN, is trying to promote its exterior company mortgage ebook price near Rs 5,000 crore, in line with a supply.    

The course of, geared toward lowering the general debt of IL&FS, shall be launched this week, the supply mentioned.

As of March 31, 2019, the non-banking finance firm’s asset beneath administration stood at Rs 18,000 crore which incorporates exterior, inner loans and inner investments. The firm is but to declare its outcomes for 2019-20.

“Entire external corporate loans of IFIN of around Rs 5,000 crore will be auctioned through the bid process. The sale of the loans would be on cash consideration,” the supply mentioned.

The firm’s exterior company mortgage ebook consists of loans to over 70 corporations which have grow to be non-performing belongings, he added.

When contacted, IL&FS spokesperson mentioned, “The company is launching a public process this week to invite bids for the sale of IFIN external corporate loan book.”   

According to the annual report of IFIN for 2018-19, it had a web lack of Rs 13,272 crore as in comparison with a web revenue of Rs 9.5 crore in 2017-18.    

Its whole borrowing as at end-March 2019 from varied avenues (debt securities, financial institution loans, industrial paper, inter-corporate deposits) stood at Rs 14,916 crore.

Last month, the debt laden IL&FS Group had mentioned it was capable of tackle debt of simply round Rs 1,460 crore within the second quarter of 2020-21 as in opposition to an earlier estimate of round Rs 8,800 crore throughout the interval.   

It mentioned the Rs 7,300 crore shortfall in September quarter goal has been rolled over for decision in subsequent quarters.

The group, nevertheless, maintained its earlier estimates of addressing greater than 50 per cent of the general debt of over Rs 99,000 crore as of October 2018, by the top of 2020-21.