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ITNL to sell Andhra Pradesh road asset to Cube Highways for Rs140 crore

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Road developer IL&FS Transportation Networks Ltd (ITNL) on Thursday said it has agreed to sell a road project in Andhra Pradesh to Cube Highways and Infrastructure Pte. Ltd, a joint venture between I Squared Capital and International Finance Corporation, for Rs.140.37 crore.

Cube Highways will also assume debt of about Rs.500 crore associated with the project. As a result, ITNL’s consolidated debt will be reduced by about Rs.640 crore, chief financial officer Dilip Bhatia said in a phone interview.

The annuity-based project—Andhra Pradesh Expressway Ltd (APEL)—operates a 75km four-lane road stretch on NH-7 across Andhra Pradesh and Telangana. APEL has a seven-year operating history.

ITNL, which has 31 road projects in its portfolio, had consolidated debt of Rs.27,643 crore as on 31 March.

Mint reported in April that ITNL was in advanced talks with US-based infrastructure investment manager I Squared Capital for the sale of a majority stake in two of its annuity-based road assets. Cube Highways is a Singapore-based company investing in road and highway projects, along with some other infrastructure sectors in India. It has been among the active investors in the Indian roads sector, looking to acquire operational assets with double-digit internal rate of returns (IRRs).

Read more at: http://www.livemint.com/Companies/iVtfGkkrzIXdaAqIVNbPcP/ITNL-to-sell-Andhra-Pradesh-road-asset-to-Cube-Highways.html

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