In a bid to pay off its debt, Infrastructure Leasing & Financial Services Ltd (IL&FS) has started the process to sell a 49 per cent stake in a Chinese road asset company.
IL&FS subsidiary ITNL International Pte Ltd holds the equity stake in Chongqing Yuhe Expressway Company Limited, a company incorporated in China.
The Chinese company currently holds a concession for a toll-based expressway of approximately 58.72 km, over which it has the right to collect tolls from users. Approximately 13.25 years of the term of the current concession remain as of March 31 and Chongqing Yuhe Expressway Company Limited has the right to collect tolls from users, and subsidies from the Chinese government, for the remainder of the concession.
