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IL&FS sells stake in Fujairah oil terminal, clears $100m debt

By Anoop Agrawal

09:04, 25 November 2021

Night view at Fujairah oil terminal
IL&FS resolves debt with stake sale in Fujairah terminal – Photo - Shutterstock

India’s IL&FS Group has sold its 71% stake in IL&FS Prime Terminals, a state-of-the-art energy storage terminal in the emirate of Fujairah, to VTTI of the Netherlands.

VTTI will now own a 90% stake in the terminal, while the other 10% will remain with the Fujairah government.

The acquisition of the terminal will help VTTI expand its long-established position in the port of Fujairah in the United Arab Emirates.

The sale has resolved outstanding debt of up to INR7.57bn ($100m) as well as enabling the release of a corporate guarantee of $110m.

The key lenders to IL&FS Prime Terminals were First Abu Dhabi Bank, National Bank of Fujairah and the State Bank of India – which had outstanding debt of more than $80m – which has been fully repaid.

Chinese road project

The sale of the stake in IL&FS Prime Terminals marks the second major sale of an IL&FS Group company in a foreign location under the government-appointed board.

IL&FS earlier sold its 49% holding in a Chinese road project – the Chongqing Yuhe Expressway – to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund for $141m.


2,004.85 Price
-1.180% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.50

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030


16,080.90 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0


44,160.40 Price
+1.600% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

PingAn agreed to take over INR16bn ($213m) debt in the project.

With the latest sale, the board of IL&FS Group has resolved more than INR520bn of debt while maintaining its overall debt estimate at INR610bn by the end of March 2022.

At 14.40 IST, shares in IL&FS Investment Managers traded 4.9% higher at INR6.45 on the National Stock Exchange.


Read more: Indian companies recovering to pre-COVID levels says CARE Ratings



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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
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