IL&FS completes sale of wind energy arm to Orix

Infrastructure Leasing and Financial Services (IL&FS), has completed its first asset sale plan, selling 51% stake in its wind energy arm to Orix Corporation. “The IL&FS Group has completed the sale process of its 51% stake, held through IL&FS Wind Energy Limited (IWEL) in seven operating wind power SPVs (with 874 MW of generation capacity) to ORIX Corporation of Japan. “With this development, ORIX, which previously owned 49% in each of the seven SPVs, now has 100% ownership,” the company said. Orix is one of the largest shareholders of IL&FS. In accordance with the terms of the share purchase agreement, ORIX has transferred to an escrow account, Rs. 590 crore for the stake and Rs. 216 crore towards full repayment of debt advanced by IL&FS Energy Development Company Limited to the SPVs. “Further, the entire debt of approximately Rs. 3,500 crore held in the seven SPVs will continue under the ownership of ORIX, thereby resulting in no haircut for the lenders,” IL&FS said. External lenders to the Wind SPVs are Power Finance Corporation, Bank of Baroda and India Infradebt.

Source : https://www.thehindu.com/todays-paper/tp-business/ilfs-completes-sale-of-wind-energy-arm-to-orix/article29730430.ece

About ChinmayaIAS Academy - Current Affairs

Check Also

INDIA-INDONESIA COORDINATED PATROL

CONTEXT: Recently, the 35 edition of India-Indonesia Coordinated Patrol (IND-INDO CORPAT) between the Indian Navy …

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Free Updates to Crack the Exam!
Subscribe to our Newsletter for free daily updates