BASIS POINT-Takeout in market for IL&FS unit`s US$140m bridge

Last Updated: Wed, Nov 21, 2012 08:50 hrs

HONG KONG, Nov 21 (Basis Point) - A US$90m seven-year amortising loan that will take out a US$140m 12-month bridge for IL&FS Transportation Networks Ltd (ITNL) is in the market, according to sources.

IL&FS Financial Services Ltd is the arranger on the new deal, which was launched sometime in October. The deal has an average life of 5.5 years and offers a margin of 500bp over Libor.

Banks were invited to join with tickets of US$20-25m for fees of 100bp. The all-in is 518.18bp.

Two banks have already committed to the transaction, which has an end-November deadline. ITNL Pte Ltd is the borrower.

Proceeds refinance a US$140m 12-month bridge for ITNL signed in December last year. The bridge funded ITNL's around US$150m acquisition of a 49% stake in Chongqing Yu He Expressway Ltd, which operates a 58km expressway connecting downtown Chongqing with Hechuan county and has concession rights until June 2032.

IL&FS Financial Services Ltd was also the arranger of the bridge loan, which paid an all-in of 500bp. Five Indian banks joined that deal.

ITNL is a wholly owned unit of Indian infrastructure development firm Infrastructure Leasing & Financial Services Ltd. (Reporting by Prakash Chakravarti; Editing by Gavin Stafford)

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