Serial Defaulter IL&FS in Spotlight as Bond Payment Due
- IL&FS’s unit has 37.5 million yuan coupon due: Bloomberg data
- Bonds are pricing an ‘optimistic outcome’: SC Lowy’s Chandra
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Infrastructure Leasing & Financial Services Ltd., which sent a shock through Indian financial markets last year when it defaulted on debt, faces a much-awaited coupon payment due Friday on overseas bonds.
The so-called dim sum bonds, or offshore yuan-denominated bonds, are guaranteed by IL&FS Transportation Networks Ltd., a unit of IL&FS which has already defaulted on interest payments due on five rupee-denominated bonds, according to a Dec. 31 filing. The company must pay a 37.5 million yuan ($5.5 million) coupon on the 1 billion yuan outstanding note issued by a special purpose entity, according to Bloomberg-compiled data.