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IL&FS seeks to raise $4.2bn by selling assets

Indian shadow banker Infrastructure Leasing & Financial Services (IL&FS) has defaulted on more than five of its obligations since August. Thus, it is seeking to raise over $4.2bn by selling its assets, as per news reports.

The report added that the company that is categorized as a “systematically important” NBFC by the RBI, plans to sell 25 assets. What’s more, its already received investor interest for 14 of them.

Meanwhile, there is wariness that defaults by IL&FS, which has a total debt of $12.6bn, that is, 61% through loans from financial institutions, could spread to other shadow banks.

In other news, Japan’s Orix Corporation, which owns a 23.5% stake in the beleaguered IL&FS is keen to acquire a majority stake in the infrastructure development and finance company.

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